Court Directs Verification of Money Source by Income Tax Department Following Acquittal in Gambling Charges
In a significant ruling, the Rajasthan High Court's Jaipur Bench has directed the release of Rs. 7,35,000, previously seized in connection with a gambling case, back to the petitioner, Imran Mansoori. The decision comes after the withdrawal of prosecution by the State and the subsequent acquittal of Mansoori. The Court's judgment, delivered by Justice Anoop Kumar Dhand on July 14, 2026, emphasized that there was no justification for retaining the seized money once the accused was acquitted, following the withdrawal of charges under the Rajasthan Public Gambling Ordinance, 1949.
The case originated when an FIR was registered against Mansoori at the Gumanpura Police Station in Kota City under Section 13 of the Rajasthan Public Gambling Ordinance, leading to the seizure of a mobile phone and Rs. 7,35,000. Although the trial court allowed the release of the mobile phone, it refused to return the money. This decision was upheld by the Revisional Court, which maintained that the funds could not be released without a trial, despite the State's withdrawal of prosecution.
Challenging these orders, Mansoori approached the Rajasthan High Court. His counsel argued that with the withdrawal of charges, there was no basis for retaining the funds. The High Court concurred, criticizing the lower courts for not providing justified reasons for denying the release of money. The judgment stipulated that while the money should be returned, the petitioner must submit details of its source, to be verified by the Income Tax Department. Any discrepancies found by the department could lead to further legal action, ensuring compliance with financial regulations.
This ruling underscores the legal principle that property seized during a criminal investigation must be returned to the rightful owner once charges are withdrawn, provided there is no lawful reason for its retention. The decision also highlights the court's role in balancing the rights of individuals with regulatory oversight by agencies like the Income Tax Department.
Bottom line:-
In cases where prosecution is withdrawn and the accused is acquitted, the seized property, including money, cannot be retained unless proper justification is provided; however, its release can be subject to verification of the source of funds by the Income Tax Department.
Statutory provision(s): Criminal Procedure Code, 1973 Section 321, Rajasthan Public Gambling Ordinance, 1949 Section 13
Imran Mansoori v. State of Rajasthan, (Rajasthan)(Jaipur Bench) : Law Finder Doc id # 2944647
