Interim release of seized documents and personal electronic devices permitted after preservation of evidentiary data.

The Petitioner, owner of Basundhara Hotel and a licensed liquor shop proprietor, challenged the order dated 09.12.2024 passed by the J.M.F.C., Basta, which rejected his application under Section 457 of the Cr.P.C. for the release of seized documents (IDs, bank books, mobile phones) and cash amounting to ₹8,00,000/-

The seizure occurred during an excise raid on 20.03.2024, where 1,500 liters of country-made liquor were recovered, leading to charges under Section 52(a)(i) and (c) of the Odisha Excise Act, 2008

The Petitioner contended that the documents were essential for his daily business and that the investigation was effectively complete as the Final Prosecution Report had been submitted on 18.05.2024

The State opposed the release, citing the documents as primary evidence and expressing concerns regarding tampering before the trial commenced

1. Whether the continued retention of seized documents and cash is legally justified after the submission of the Final Prosecution Report

2. Whether the seized articles can be released in favor of the Petitioner during the pendency of the trial subject to specific conditions

Section 457/451 of the Cr.P.C. (and Section 528 of BNSS) regarding the disposal of seized property

Sundarbhai Ambalal Desai v. State of Gujarat, which mandates that property should not be kept in police stations for long periods and should generally be released within fifteen days to one month

Smt. Basavva Kom Dyamangouda Patil v. State of Mysore, holding that property should be restored to the owner once the necessity for retention ceases to avoid decay or serve the interests of justice

Statutory restrictions on property release under Sections 71(7) and 71(8) of the Odisha Excise Act, 2008

The Court observed that while Section 71 of the Odisha Excise Act restricts release during confiscation proceedings, the legislative intent favors the prompt preservation of evidence and effective adjudication

The Court reasoned that since the Final Prosecution Report had already been submitted, the investigative necessity for holding documents like Aadhaar cards, passbooks, and mobile phones was diminished, provided the Investigating Agency first extracts and preserves the necessary data for trial

The Court found that keeping these items indefinitely would cause undue prejudice to the Petitioner’s business livelihood

Regarding the cash of ₹8,00,000/-, the Court determined that its immediate release was not warranted as it potentially constituted sale proceeds of crime and required safer custody until further adjudication

It ordered the release of the seized documents (Aadhaar cards, bank passbooks, mobile phones) to the Petitioner upon the completion of data extraction by the Investigating Agency and the execution of an appropriate bond to ensure their production at trial. The prayer for the release of ₹8,00,000/- in cash was denied at this stage.