Two businessmen from Thiruvananthapuram approached the High Court on Tuesday to convert Rs 20.50 lakh to new currency notes. The petition sought a directive from Reserve Bank of India to convert the old notes.
The New Indian Express reports that the petitioners, SP Mahesh and Manoj S Nair, of Jawahar Nagar, Thiruvananthapuram, were on their way to the bank in November to exchange the currencies, when the police checked their vehicle and seized Rs 20.50 lakh in old denominations of Rs 500 and Rs 1000.
After police confiscated the money, it was kept in the Nanthencode branch of State Bank of Travancore (SBT) in a locker.
Police had informed Income Tax too regarding the seizure.
Petitioners in their plea have claimed that police wrongly assumed it to be black money and it was later proved by Income Tax (I-T) Department that it was not illegal money.
They have claimed that the department had verified that the money was from sources bound to tax authorities and it was not black money.
Later in their petition to the Sub-Divisional Magistrate (SDM), Thiruvananthapuram, the court told the authorities that there was no trace of any financial fraud and asked them to return the seized amount to the businessmen.
The court also directed Regional director, RBI, Thiruvananthapuram, to take necessary steps to convert the old currency to new notes, in a letter issued to RBI.
TNIE further reports that there was no reply from RBI to the directive given by SDM. That is why the businessmen approached Kerala HC seeking a directive from RBI to convert their notes as directed by SDM