Banned notes of Rs 1000 and Rs 500 seized in searches should be invested in fixed deposits: HC

Indore: Demonetised currency notes of Rs 1000 and Rs 500 denomination seized in corruption cases and other criminal matters and which is accounted for should be invested in fixed deposits with nationalised banks by December 30, the Madhya Pradesh High Court has ruled.

The Indore bench of the court comprising Justice S C Sharma and Justice Rajiv Kumar Dubey gave an order in this regard on December 19, while hearing a petition filed by one Indrajeet Singh (58), a former Development Officer with United India Insurance Company.

The bench said that undisputed amount in old notes should be invested in nationalised banks as fixed deposit (FD) before December 30. The Bench has also directed the court registrar to inform all the judicial officers about this order.

In his interim petition, Singh contended that CBI had seized an amount of Rs 4,61,522 in the denomination of Rs 500 and Rs 1000 respectively on November 11, 2002 and March 21, 2003 during searches at his residence.

He urged that this amount should be deposited as FD in nationalised banks, otherwise the seized currency notes would no longer be legal tenders following demonetisation exercise.

Singh was convicted by the CBI court in Indore on May 31, 2013 under Prevention of Corruption Act for income disproportionate to known sources of income. Later, Singh moved High Court challenging the decision of the CBI court.

The petition is still pending before the High Court.