Don't hold on to seized property indefinitely for sake of investigation: HC

Cuttack: Orissa high court has called upon courts and investigating authorities to ensure that seized property is not retained indefinitely without valid legal justification and a periodic review is done to prevent excessive backlog and mismanagement of seized assets.

"It is imperative to take steps for its prompt release or disposal unless required for an ongoing investigation or trial," Justice Sibo Sankar Mishra said, adding, "The primary objective should be to prevent unnecessary storage, avoid wastage of resources, and ensure that valuable assets retain their utility keeping in mind the investigation and trial process is not compromised."

The HC was hearing a petition seeking release of Rs 15 lakh cash seized by the CBI during investigation into a multi-crore unauthorised chit fund scam. The petition was filed by owner of the ponzi firm, who is also the accused.

In his order on April 10, Justice Mishra said, "Magistrates should take proactive measures to ensure that seized property is not retained for an extended period without justification. Court directives for the return or disposal of property should be issued without undue delay."

While directing the release of the seized Rs 15 lakh subject to certain conditions, Justice Mishra said, "The court finds no justifiable reason to retain the seized cash in judicial custody when its circulation could contribute to economic activity without compromising the investigation or trial proceedings."

The release of the seized cash was allowed on condition of furnishing bank guarantee equivalent to 50% (Rs 7.50 lakh) which shall remain valid until the conclusion of the trial and securing the remaining 50% (Rs 7.50 lakh) through indemnification of any immovable property or other financial security as an assurance against potential liabilities arising from the case.

Justice Mishra also said investigating officers must regularly report on seized property and seek judicial orders for its appropriate handling. He further issued guidelines hoping that the courts and law enforcement agencies can ensure that seized property is managed in an efficient and legally sound manner beneficial to both the justice system and society at large.

Accordingly, Justice Mishra directed the HC registry to transmit the judgment copy to all district courts, special courts, subordinate courts, director general of police and all other law enforcement agencies for the purpose of guidance.