Karnataka HC: Mere Possession of Cash Without Any Evidence Not an Offence U/S 98 of Karnataka Police Act

The Karnataka High Court held that mere possession of a large amount of cash without valid documents does not automatically constitute an offence under Section 98 of the Karnataka Police Act.

Justice Hemant Chandangoudar noted that to invoke this provision, there must be a reasonable belief that the property is stolen or fraudulently obtained.

In this case, the petitioner was found with ₹8,38,250 during the 2019 Lok Sabha elections without any evidence suggesting the cash was illicit.

The Court also highlighted that the offence is non-cognizable, requiring prior Magistrate approval for investigation under Section 155(2) of the CrPC. Since this procedure wasn't followed, the FIR was quashed.