On 22 April 2026, the Nagpur bench of  the  Bombay High Court directed the Reserve Bank of India (RBI) to process and exchange demonetised ₹500 notes amounting to ₹2,00,000 belonging  to petitioner Girish Malani and to  give him the equivalent amount in valid currency within eight weeks.

No Fault of Petitioner:

The Division Bench of Justice Urmila Joshi‑Phalke and Justice Nivedita Mehta held that  the notes had been seized by  local police before the expiry of the statutory deposit period. Because of this,  the petitioner was  unable to deposit them within the prescribed window. The Court said  that the delay was not his fault and he could not be penalised for circumstances beyond his control.

 Journey and Seizure:

In December 2016, Girish Rameshchandra Malani was travelling to the Renuka Devi Temple in Mahur with ₹2,00,000 in ₹500 notes. During election duty, the police stopped his vehicle and seized the cash. Later, the Income Tax authorities confirmed that the money was legal.

The notes were returned to him on December 31, 2016, one day after the official deadline of December 30 for depositing demonetised notes. Because of this delay, he could not deposit the money within the permitted time.

He approached the RBI for exchange of the notes, but his request was rejected. After several unsuccessful attempts, he filed a writ petition before the Bombay High Court.

Court Relief:

On April 22, 2026, the Nagpur Bench ruled that he should not suffer because of the delay caused by the police and directed the RBI to accept his notes.

“The petitioner, therefore, had no control over the said amount during the relevant period… The petitioner cannot be placed in a disadvantageous position on account of an act for which he is not responsible.”

“In view of the availability of such particulars [serial numbers], the objection… with regard to non-compliance… does not survive.”

“Where the specified bank notes were seized prior to the prescribed date and were returned thereafter, the petitioner therein could not be denied the benefit of exchange merely on account of such circumstances.”

Final Directions:

The rule was made absolute. The petitioner must tender the notes to the RBI within one week. The RBI has been directed to verify them and credit the equivalent amount in valid legal tender within eight weeks.

Case Details : Shri Girish Rameshchandra Malani vs Reserve Bank of India