Hiralal H Malu, Legal Heir of Late Mrs. Shakuntala Hiralal Malu Vs Deputy Director of Income Tax (Investigation) (Bombay High Court)
Bombay High Court heard a petition filed by Hiralal H. Malu, the legal representative of his late wife, Shakuntala Malu, regarding the return of seized jewelry. The Income Tax Department had seized gold and diamond jewelry from Shakuntala Malu’s premises in 2005, valued at ₹7,56,640. Following assessments and appeals, it was determined that no tax dues were pending, and an order for the release of the jewelry was issued on April 11, 2018. However, despite repeated follow-ups, the jewelry was not returned. The tax department and Bank of Maharashtra, where the jewelry was allegedly stored, blamed each other for its loss. The petitioner, now 88 years old, sought judicial intervention after facing prolonged inaction and insensitivity from both institutions.
The court expressed concern over the lack of accountability and the blame-shifting between the tax department and the bank. It noted that the petitioner had been compelled to approach higher authorities, including the Prime Minister’s Office and the Reserve Bank of India, due to inaction. Referring to a Supreme Court judgment on bank locker security, the court emphasized the responsibility of banks in safeguarding assets and the tax department’s duty to ensure fair governance. Given the petitioner’s age and the prolonged delay, the court directed the tax department and the bank to file affidavits clarifying their stance and identifying responsible parties. Additionally, it ordered the case details to be presented to the Chairperson of the Central Board of Direct Taxes (CBDT) and the Managing Director of the Bank of Maharashtra to ensure accountability. The matter is scheduled for further hearing on February 11, 2025.
