Demonetisation will have no impact on investigating agencies which possess a huge cache of old Rs 1,000 and Rs 500 notes, seized over the years as case property, with their officials saying the cash was "government accounted money" and could be deposited in respective bank accounts till December 30.
While the Enforcement Directorate (ED) and Delhi Police said they would have no problem in depositing the cash in the banks, the CBI preferred to reserve its comments by maintaining that the issue was "under examination". Agencies like CBI and ED deal with huge cash amounts which are recovered or seized during raids and investigation of their cases.Both the agencies deal with high-stake financial frauds and ED is a specialised agency handling money laundering matters as well.
ED and Delhi Police said the confiscated cash lying with them would be deposited in their designated bank accounts by December 30, the deadline fixed by government, to deposit old currency notes.
On being asked about the impact of demonetisation on cash recovered by them during probe, Delhi Police's Joint Commissioner of Police (South-Western Range) Dipendra Pathak said the cash stored in the 'malkhana' (warehouse) would be deposited in the banks and it can be done till December 30 as the money is "government accounted". He, however, said that though all the money is accounted for, it is difficult to tell the number of high denomination currency notes of Rs 1,000 and Rs 500.
He said police officials have been instructed to move concerned courts and seek direction on how to go ahead with each case where the case property involves cash. Similarly, a senior ED official said the move has "not affected" the agency as according to procedure, the seized money is either deposited in the designated bank accounts or converted into fixed deposit receipts (FDRs).
When asked about the steps being taken by CBI to deal with the issue of demonetisation as the agency stores the currency notes seized during raids, an official said the matter was "under examination and we are not going to make any comment on it".