Hyderabad: The Telangana High Court has ruled that police officers are authorized to seize stolen gold jewellery, even if it is held by gold loan companies.
This decision came as the court dismissed multiple petitions from Manappuram Gold Finance and similar firms, which argued that they were operating under the permissions granted by the Reserve Bank of India (RBI).
Justice B Vijaysen Reddy emphasized that thieves often pledge stolen gold with these companies, complicating recovery efforts for victims.
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The judge acknowledged the home department’s counsel, Mahesh Raje, who pointed out that many stolen items were being easily pawned.
However, he noted that gold loan companies have alternative legal remedies available; they can petition the trial court for the return of seized items.
The trial court is better positioned to assess the situation due to its access to relevant facts and evidence.
Police can seize items under Sec 102 of the CPC: HC
Justice Reddy clarified that while police can seize these items under Section 102 of the Criminal Procedure Code, the gold loan companies cannot seek relief directly from the High Court under Article 226 of the Constitution.
Instead, they must follow the legal process outlined in Sections 451 and 457 of the Criminal Procedure Code to request the return of their assets from a magistrate.
The state counsel highlighted concerns about gold loan companies not requiring proof of purchase from individuals pledging gold, which has resulted in a significant number of these ornaments being identified as stolen.
The judge dismissed claims from these companies regarding jurisdiction, affirming that police have the authority to act in such cases.
