Business Standard

Demonetisation: ACB in Catch-22 over cash seized from babus

Cash can't be put in the bank as it is proof, and ACB can't hold it as it is no longer legal tender

cash, protest, currency, demonetisation, black money, ATM, banks, rupee, notes

Photo: Shutterstock

R Krishna Das Raipur
The Anti-Corruption Bureau (ACB) had seized about Rs 10 crore in cash from government officials in Chhatisharh, in 85 different cases of corruption. The seizures were made after traps were set to catch the perpetrators accepting bribes, and raids were conducted in disproportionate asset cases.

As per the procedure, the bureau has to keep the cash seized in its custody, as evidence in the case. In the trap cases, the babus were caught red handed accepting bribes and the number of the notes seized were mentioned in the first information report (FIR).

Bureau officials faced a typical dilemma -- the cash can neither be deposited in the banks as it is evidence, nor can it be retained as it was no more legal tender. Most of the currency notes seized were in the old 500- and 1,000-rupee denominations that ceased to be legal tender after November 8. 
 
The bureau submitted an application in the Chhattisgarh High Court urging to allow it to deposit the old currency notes in the government treasury. The court issued an order in its favour. 

“The High Court had ordered to deposit the cash available with the bureau in the treasury through challans,” government prosecutor Yogesh Tamrakar said. The ACB has initiated the process after the order, he added. The notes were deposited till the eleventh hour even as the deadline ended today. 

According to legal experts, the accused, if acquitted, would be eligible to get the new notes. Those exonerated would have to apply for recovering the cash seized from them. The government would process the plea and hand over cash in new notes after completing the required formalities.

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Dec 30 2016 | 4:45 PM IST

Explore News