Pune: RBI Told to Return Rs 2 Lakh in Valid Currency in 2016 Demonetisation Case
Pune, 4th May 2026: Nearly a decade after his cash was seized during the 2016 demonetisation period, a civil engineer and contractor from Bibwewadi has finally secured relief, with the Nagpur bench of the Bombay High Court directing the Reserve Bank of India (RBI) to return ₹2 lakh in valid currency.
Girish Rameshchandra Malani, a resident of Bibwewadi, was travelling to the Renuka Devi temple in Mahur on December 1, 2016, along with his sister when police intercepted their vehicle at a checkpoint in Nanded district amid election-related restrictions. Authorities seized ₹2 lakh in old ₹500 notes, citing the model code of conduct and curbs on carrying large amounts of cash.
Malani maintained that the money belonged to his business and that he intended to deposit it in his bank account in Akola before the government’s December 30, 2016 deadline for exchanging demonetised currency.
Following an inquiry, the Income Tax Department found his documents to be valid and granted clearance on December 28, 2016. However, procedural delays resulted in the cash being returned only on December 31—one day after the deadline for exchanging old notes had expired.
When Malani approached the RBI, the central bank declined to exchange the currency, citing existing rules. With no alternative, he moved the Nagpur bench of the Bombay High Court.
A division bench of Justices Urmila Joshi-Phalke and Nivedita P. Mehta ruled in his favour, observing that a citizen cannot be deprived of depositing legally earned money due to delays caused by government authorities. The court directed the RBI to verify the seized notes and return ₹2 lakh in valid currency within eight weeks.
Reacting to the verdict, Malani said the judgment reaffirmed his faith in justice, though it came after a long wait. He added that he plans to offer food donations worth ₹5,000 at a temple after receiving the amount.
Reflecting on his experience, Malani said he now avoids carrying more than ₹50,000 in cash during election periods to prevent similar issues.
