Ramesh Bapurao Potdar Vs Union of India (Bombay High Court)
Bombay High Court ruled in favor of petitioners whose ₹20 lakh in demonetized ₹500 and ₹1,000 notes were seized during a raid on December 26, 2016, just days before the deposit deadline of December 30, 2016. The Income Tax Department initially withheld the cash but later decided not to seize it, returning it on January 14, 2017. When the petitioners attempted to deposit the money with the Reserve Bank of India (RBI), it was rejected on the grounds that the deadline had passed. The petitioners argued that they were unable to deposit the cash due to circumstances beyond their control and sought relief from the court. The RBI contended that without serial numbers of the seized notes, they could not process the deposit, citing the Specified Bank Notes (Cessation of Liabilities) Act, 2017.
The court found that the petitioners were not at fault since the money had been seized before the permissible deposit date. In support of their claim, they later provided serial numbers of the seized notes, fulfilling the legal requirement. Given this, the court directed the RBI to accept the specified banknotes and exchange them for legal tender. The petitioners were also required to indemnify the RBI against any future claims. This ruling ensures that individuals who were prevented from depositing demonetized currency due to official actions are not unfairly penalized.
