Seizure of cash without following prescribed procedures is illegal, and transfer to the Income Tax Department without an FIR is unauthorized.

ORDER :

1. This writ petition is filed under Article 226 of the Constitution of India seeking the following relief:

To issue a writ, order or direction, or writ, more particularly one in the nature of WRIT OF MANDAMUS declaring:

(i) The action of respondent No.5 in seizing the cash amounting to Rs.15,80,000/- belonging to the petitioner No.1 and further handing it over to the Income Tax Department, more particularly the respondent No.2, without any authority;

(ii) The action of respondent No.4 in not releasing the cash amounting Rs.15,80,000/- belonging to the petitioner No.1 despite lapse of one year from the date of seizure i.e., 05.04.2024 and despite submission of detailed explanation, dated 06.05.2024 as illegal, arbitrary, unjust, irrational, without jurisdiction, contrary to the provisions of Income Tax Act, 1961 and Standard Operating Procedure (SOP) for seizure and release of cash and other items dated 19.08.2021 issued by the respondent No.5 besides being violative of right of the petitioner under Article 14 and 21 of the Constitution of India and consequently, direct the respondent No.4 to release the seized amount of Rs.15,80,000/- to the petitioner No.1 and pass such other order or orders.

2. Heard the learned counsel for the petitioners; learned Standing counsel appearing for the Income Tax Department and learned Senior Counsel appearing on behalf of the learned counsel for the respondent No.5.

3. Submissions of the learned counsel for the petitioners:

(a) The petitioner No.1 is a Housewife, having PAN card bearing No.AJGPL5329M. Since the income of petitioner No. 1 is below the taxable limit, petitioner No. 1 would not be liable to be assessed to income tax. The petitioner No.1 scheduled the marriage of her daughter by name Ms.Lakshmi Ramya on 24.04.2024 at Rajamundry. In that regard, for purchasing gold and dress materials for her daughter’s wedding, the petitioner No.1 arranged required funds from various sources amounting to Rs.15,80,000/- and entrusted the same to the petitioner No.2 Mr.Kolli Venkata Satyanarayana, who is her cousin.

(b) It is further submitted that the said cash of Rs.15,80,000/- was carried by the petitioner No.2 for the proposed purchase of new gold jewellery, dress materials and return gift items, for the marriage, at Chennai and Kanchi. On 05.04.2024, when the petitioner No.2 reached Chennai Central Railway Station, the Flying squad/Static Surveillance Team (SST) of respondent No.5 intercepted him and seized the said cash of Rs.15,80,000/- from his possession on the ground that the Model Code of Conduct for the General Elections was in force and that carrying cash of Rs. 50,000/- or above without supporting documents was impermissible. The petitioner No.2 tried to provide reason to the respondent No.5 officials that he was unaware of the model code of conduct, which was in force and also informed the authorities that the said amount is an accounted money and the same is carrying for the purpose of purchase of jewellery, dress materials and gift items for the marriage of his niece but the respondent No.5 did not give opportunity. Further, the respondent No.5 handed over the seized cash of Rs.15,80,000/- to the respondent No.2-official on the ground that the petitioner No.2 was in possession of unexplained cash.

(c) The procedure adopted by the respondent No