Seized Money Can't Be Retained After Acquittal: Rajasthan High Court Orders Release Of ₹7.35 Lakh In Gambling Case, Seeks I-T Verification
The Rajasthan High Court has held that once a party stands acquitted in a gambling case, based on withdrawal of the criminal case, there is no reason to retain the seized money in the Treasury or in the Government Fund. The bench of Justice Anoop Kumar Dhand thus directed the authorities to release the amount seized from the petitioner, subject to the condition that the petitioner shall...
The Rajasthan High Court has held that once a party stands acquitted in a gambling case, based on withdrawal of the criminal case, there is no reason to retain the seized money in the Treasury or in the Government Fund.
The bench of Justice Anoop Kumar Dhand thus directed the authorities to release the amount seized from the petitioner, subject to the condition that the petitioner shall disclose the details of the source of receipt of the amount.
The Court held that the details submitted by the petitioner shall be verified by the Income Tax Department, and if the explanation was not found to be satisfactory, appropriate action could be taken against the petitioner.
For context, an FIR was registered against the petitioner under Section 13 of the Rajasthan Public Gambling Ordinance, 1949, wherein a mobile phone and a sum of Rs. 7.35 Lakhs was recovered and seized by the police.
During the pendency of the trial, the Department of Home, decided to withdraw the case, post which the petitioner was acquitted. Thereafter, the petitioner filed an application seeking release of the mobile phone and the seized amount.
However, the application was allowed only partly. The release of the mobile phone was ordered after erasing all data. However, the money was not released in petitioner's favour.
The petitioner filed a revision petition which was also rejected on the ground that the seized amount was money pertaining to gambling which could not be released unless the offence was tried, even if the matter was withdrawn by the government.
It was argued by the petitioner that once the prosecution had withdrawn the case, there was no question or occasion of making such observation for conducting trial against the petitioner.
After hearing the contentions, the Court made the following observation in relation to the reasoning by the revisional court.
“Such observation made by the Revisional Court is foreign to the procedure established by law, as 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.”
In this light, the amount was ordered to be released to the petitioner with a condition that the petitioner shall disclose details of source of receipt of that amount. The Court also directed the Income Tax Department to verify these details, and if not found satisfactory, to proceed against the petitioner in accordance with law.
Accordingly, the petition was disposed of.
Title: Imran Mansoori v State of Rajasthan
Citation: 2026 LiveLaw (Raj) 291