Bombay High Court Orders RBI to Exchange Seized Demonetised Notes
April 23, 2026
The Bombay High Court has instructed the Reserve Bank of India to exchange Rs 500 demonetised notes seized from Girish Malani during demonetisation. The court ruled that Malani should not be penalized as the notes were in police custody beyond the exchange window. The RBI must provide the legal tender.
The Bombay High Court, in a significant directive, has ordered the Reserve Bank of India to exchange demonetised Rs 500 notes totaling Rs 2 lakh. These notes, belonging to Girish Malani, were seized during the demonetisation period and returned post the official exchange duration.
In its ruling, the Nagpur bench of Justices Urmila Joshi-Phalke and Nivedita Mehta emphasized that Malani couldn't be held accountable as the police had seized the notes before the cut-off date and retained them until after the exchange window had closed. Consequently, the directive was a response to Malani's petition seeking justice.
Malani's plea argued that he was unjustly deprived of the chance to exchange the currency. Although RBI initially refused his request, the High Court acknowledged that procedural compliance shouldn't rigidly punish individuals when the fault wasn't theirs. The bench has now directed Malani to submit the notes for exchange, ensuring the RBI facilitates the conversion promptly.
(With inputs from agencies.)
In its ruling, the Nagpur bench of Justices Urmila Joshi-Phalke and Nivedita Mehta emphasized that Malani couldn't be held accountable as the police had seized the notes before the cut-off date and retained them until after the exchange window had closed. Consequently, the directive was a response to Malani's petition seeking justice.
Malani's plea argued that he was unjustly deprived of the chance to exchange the currency. Although RBI initially refused his request, the High Court acknowledged that procedural compliance shouldn't rigidly punish individuals when the fault wasn't theirs. The bench has now directed Malani to submit the notes for exchange, ensuring the RBI facilitates the conversion promptly.
(With inputs from agencies.)