The Rajasthan High Court has ruled that money seized during a criminal investigation cannot continue to remain with the government once the prosecution has been withdrawn and the accused has been acquitted, unless there is a valid legal reason to retain it. Justice Anoop Kumar Dhand directed the release of ₹7.35 lakh seized from Imran Mansoori, while making it subject to verification of the source of the money by the Income Tax Department.
Background of the Case
The petition was filed by Imran Mansoori after two lower court orders refused to release ₹7.35 lakh that had been seized along with his mobile phone during an investigation under Section 13 of the Rajasthan Public Gambling Ordinance, 1949. While the Trial Court had ordered the return of the mobile phone, it declined to release the cash. That decision was later upheld by the Revisional Court.
During the pendency of the criminal proceedings, the Rajasthan Government decided to withdraw the prosecution through a policy decision. Acting on an application under Section 321 of the Code of Criminal Procedure, the Trial Court permitted the withdrawal of the case, resulting in the petitioner being acquitted. Despite this, the seized money remained in government custody.
Court's Observations
Justice Anoop Kumar Dhand found that the Revisional Court had erred in holding that the money could not be released until the offence was tried, even though the prosecution itself had already been withdrawn.
The bench observed,
“Once the petitioner has been acquitted on the basis of the withdrawal of criminal case registered against him, there was no reason or occasion to retain the seized amount in the Treasury or in the Government Fund.”
The High Court noted that the Trial Court had not given any convincing reason for refusing to release the seized amount after the criminal case had come to an end. It held that the lower courts' orders were not sustainable in law.
Decision
Allowing the criminal miscellaneous petition, the High Court partly set aside the orders of the Trial Court and the Revisional Court. It directed the release of ₹7.35 lakh to the petitioner, subject to his furnishing details regarding the source of the money.
The Court further ordered that the Income Tax Department should verify the explanation. If the explanation is found unsatisfactory, the department would be free to take action in accordance with law after giving the petitioner an opportunity of hearing.
A copy of the order was also directed to be sent to the concerned Income Tax Officer, Kota.
Case Details
Case Title: Imran Mansoori v. State of Rajasthan
Case Number: S.B. Criminal Miscellaneous (Petition) No. 5466/2024
Judge: Justice Anoop Kumar Dhand
Decision Date: 14 July 2026
