While the government has demonetised Rs 500 & 1,000 currency notes, there are certain aspects of the move which are still unclear and have left the police department in a quandary. What happens to the Rs 500 & 1,000 notes already seized by the police during raids and criminal cases? How will victims of thefts or robberies be reimbursed once the notes become obsolete?

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With cash seized in cases across the state running into crores of rupees, Maharashtra Director General of Police Satish Mathur said that there was, as yet, no directive from the government on this aspect. The state police chief said the Centre would need to take some steps in this regard as it is a national issue.

Asked what would happen to the Rs 500 & 1,000 notes seized by police during raids and criminal cases so far, which are either in the custody of police or have since become court property, a senior police officer said, "Money seized by the police during raids of criminal cases such as thefts, robberies, dacoities etc becomes court property. There are crores of rupees that has been seized by the police under various cases across the state. Since the demonetisation of notes has occurred, I feel the court will have to issue an order in this regard as, at the time of seizure, the money was legal tender. In such a case, the victim will probably have to go to the bank and get the fresh notes issued."

The police are also unclear about what to do in case the demonetised notes are part of any future seizures.

"These are all issues that will have to be resolved by the courts or through a government directive. As of now there is no such directive. I am sure that since this is a national issue, the central government will issue some directive in this regard. However, it will take some time," said DGP Mathur.

"As per procedure, after a case is concluded under provision of Criminal Procedure Code, the judge of the Sessions Court gives suitable directives for the disposal of property. The government will have to issue clarification on this aspect so that rightful owners of the money do not suffer," said lawyer and former Indian Police Service officer, YP Singh.