CRLMP No. 32 of 2026 Page 1 of 13 IN THE HIGH COURT OF ORISSA AT CUTTACK CRLMP No.32 of 2026 Challenging the order of seizure dated 15.12.2025 issued by the IIC, Balugaon P.S. IIFL Finance Limited, Bhubaneswar …. Petitioner -versus- 1. State of Odisha 2. Director General of Police, Cuttack 3. Superintendent of Police, Khurda 4. Inspector-in-Charge, Balugaon Police Station, District-Khurda 5. State Bank of India, represented by its Chief Manager, Balugaon Branch, District-Khurda …. Opposite Parties Advocates appeared in this case through Hybrid Mode : For Petitioner : Mr. Sidhant Das, Advocate For Opposite Parties : Mr. S.K. Rout, A.S.C. (For O.P. No.1) CORAM: HON’BLE MISS JUSTICE SAVITRI RATHO .…………………………………………………………………………… Date of Hearing: 03.02.2026 and 13.02.2026 Date of Judgment: 31.03.2026 …………………………………………………………………………….. Savitri Ratho, J. The CRLMP has been filed praying for a direction to the Opposite Parties to take photographs and prepare proper and detailed panchnama of the gold articles, and not to seize the gold articles and p. 2 p. 2 to direct the Opposite Parties to take bond from the Petitioner- Company, specifying that the gold articles would be produced by the Company as and when required during the course of trial and/or investigation. PROSECUTION CASE 2. Balugaon P.S. Case No.235 of 2025 has been registered on 05.08.2025 against one Jitendra Kumar Biswal for commission of offences punishable under Sections 319(2)/318(4)/314/316(5) of the Bharatiya Nyaya Sanhita (in short, “BNS”) on the information of the Chief Manager, State Bank of India, Balugaon Branch (in short, “SBI, Balugaon Branch”). The allegations in short are that Jitendra Kumar Biswal was working as Senior Associate (Cash-in-Charge), SBI, Balugaon Branch since 25.09.2023. He committed financial fraud and criminal breach of trust while discharging his duties as a joint custodian of cash and gold ornaments. On 28.07.2025, he sent a WhatsApp message to the Regional Manager, SBI, Khurda enclosing a letter dated 27.07.2025, addressed to the Chief General Manager, SBI, Bhubaneswar Circle, where he voluntarily confessed to have committed financial misconduct by (i) misappropriating ten packets of gold ornaments held in custody as part of secured gold loan assets of the bank and pledging them with NBFCs to raise funds to cover p. 3 p. 3 personal financial losses sustained by online share-market trading and (ii) he was using his monthly salary to repay the EMIs of said loans and (iii) contemplating suicide or readiness to face legal consequences. On 29.07.2025, he submitted another handwritten letter to the Chief Manager, SBI, Balugaon Branch admitting that (i) he took eleven packets of gold ornaments from the branch, kept as security against gold loans and pledged them with multiple NBFCs (ii) He illegally took away cash amounting to Rs.6,00,000/- from the on-site ATM of the branch. (iii) He further took away the cash hand balance of Rs.75,000/- kept in the branch. Preliminary investigation by the bank revealed that a (i)total of twelve gold loans packets pledged by the customers were missing from the branch and (ii) there was a cash shortage of Rs.6,27,000/- in the on-site ATM of the branch on two separate occasions (Rs.5,00,000/- and Rs.1,27,000/- respectively) which was meant for ATM replenishment. (iii) Hand balance of Rs.75,000/- from the branch was also found missing (iv) The total amount misappropriated came to approximately Rs.76.98 lakhs. 3. As it was found during investigation that Jitendra Kumar Biswal had taken gold loan from IIFL Finance Limited, Balugaon Branch, using the gold ornaments pledged to SBI, Balugaon Branch p. 4 p. 4 by different loanees, the IIC, Balugaon P.S. directed the petitioner- Branch Manager IIFL Finance Limited to freeze the account of Jitendra Kumar Biswal. The petitioner kept his account on hold and intimated the I.O that no transaction from the said account will be carried out without the specific directions of the Court or the competent authority. On 15.10.2025, the IIC, Balugaon P.S. vide letter dated 15.12.2025 directed the Branch Manager IIFL, Balugaon Branch to produce the gold for the purpose of seizure of the gold articles. SUBMISSIONS ON BEHALF OF PETITIONER 4. Mr. Sidhant Das, learned counsel for the Petitioner referring to Section 107 of the Bharatiya Nagarik Suraksha Sanhita, 2023 (in short “the BNSS”), submits that the said provision is a new provision which has been included in the BNSS and provides for attachment, forfeiture or restoration of property during investigation of the case. Referring on Section 107 (1), he submits that an application has to be made by the I.O. in the court of the learned Magistrate or Court exercising jurisdiction to take cognizance of the offence or commit for trial or try the case, for the attachment of such property and as per Section 107 (2) the Court or the Magistrate may issue an order of attachment being satisfied that any and all such properties are proceeds of crime only after issuing a show cause p. 5 p. 5 within a period of fourteen days and under the Section 107 (3), where the notice issued to any person under Sub-Section (2) specifies any property as being held by any other person on behalf of such person, a copy of the notice shall also be served upon such other person. He further submits that Section 106 relates to a stage before investigation. Mr. Das, learned counsel for the Petitioner relying on Annexure-14 (at page 102) a Letter dated 10.10.2025 of the Petitioner sent to the Inspector-in-Charge, Balugaon Police Station, Khordha, Odisha in response to his request letter dated 25.09.2025 for handing over the gold, submits that after giving details of the loan accounts of the accused, at paragraphs 4, 5 and 6, the Petitioner has specifically stated as follows:- “4. That, in compliance with your request, and in view of the ongoing investigation under the above- mentioned case, we have taken immediate action to freeze the said Gold Loan Account. 5. That, no further transaction will be receive specific directions or orders from the Hon'ble Court or any competent authority. 6. That, we remain committed to supporting your investigation and shall extend full cooperation in providing any further information as may be required.” 5. The learned counsel submitted that the gold in question is in p. 6 p. 6 safe custody of the lockers of the Petitioner and shall be produced as and when required by the Police/Court in course of investigation or trial in relation to Balugaon P.S. Case No. 235 dated 05.08.2025. If it is kept in the P.S. Malkhana, there is a chance of its deterioration and pilferage. The petitioner is ready and willing to produce the gold as and when required by the Court, for which the investigation will not be hampered in any manner if the gold is allowed to be kept in the custody of the Petitioner till direction is issued by the Court for handing it over to the rightful owner or if the gold is required for purpose of identification during investigation. He submitted that the accused has deposited 5 gold packets in the locker of the Petitioner company. It has not yet been ascertained whether the said gold packets are in fact stolen goods and this has to be determined by the Court in seisin over the case, i.e. Balugaon P.S. Case No.235 dated 05.08.2025. Until such determination is made, seizure of all of the gold packets in the locker of the accused will cause serious prejudice to the Petitioner as it is the security (mortgage) for the loan taken by the accused. He submitted that this Court in Manappuram Finance Limited v. State of Odisha, in CRLMP No.1727 of 2022 vide order dated 10.05.2023, while allowing the Petitioner Company to retain p. 7 p. 7 possession over the gold articles, have held that the same shall be produced as and when required by the authorities/Court. The directions issued by this Hon'ble Court are also applicable to the present case, having identical facts and circumstances. It is further submitted that this order has not been challenged and has therefore attained finality. He has submitted that similar directions may be passed in this case. SUBMISSIONS ON BEHALF OF STATE 6. Mr. S.K. Rout, learned Additional Standing Counsel submitted that the request of the I.O. to the Petitioner to produce the gold is in accordance with law and does not require interference. He submitted that he has no more submissions to make in the case other than relying on the instructions of the I.O.-cum-IIC, Balugaon Police Station. INSTRUCTIONS 7. The Instructions dated 30.01.2026 of the I.O.-cum-I.I.C., Balugaon Police Station were produced by Mr. S.K. Rout, learned Additional Standing Counsel. He submitted that as per the instructions of the I.O., Manipuram Finance Limited, Balugaon Branch in respect of loan account No. 013756070008293, all the gold has been produced on 05.01.2026 and has been seized in presence of witnesses under p. 8 p. 8 proper seizure list and the above gold at present is kept in the P.S. Malkhana. It is also stated in the instructions that “as the innocent customer who are cultivator time to time demanded the complainant to clear their loan and return their security gold from the Bank, he made request letter to the concerned bank i.e IIFL, Finance Ltd. Balugaon Branch, Manipuram Finance Ltd. Balugaon Branch and Bajaj Finance Ltd. Balugaon Branch to produce the above gold for seizure and purpose of the investigation.” STATUTORY PROVISION 8. Section – 106, Section 107 of the BNSS are extracted below: Section – 106- Power of Police Officer to seize certain property “(1) Any police officer may seize any property which may be alleged or suspected to have been stolen, or which may be found under circumstances which create suspicion of the commission of any offence. (2) Such police officer, if subordinate to the officer in charge of a police station, shall forthwith report the seizure to that officer. (3) Every police officer acting under sub-section (1) shall forthwith report the seizure to the Magistrate having jurisdiction and where the property seized is such that it cannot be conveniently transported to the Court, or where there is difficulty in securing proper accommodation for the custody of such property, or where the continued retention of the property in p. 9 p. 9 police custody may not be considered necessary for the purpose of investigation, he may give custody thereof to any person on his executing a bond undertaking to produce the property before the Court as and when required and to give effect to the further orders of the Court as to the disposal of the same: Provided that where the property seized under sub-section (1) is subject to speedy and natural decay and if the person entitled to the possession of such property is unknown or absent and the value of such property is less than five hundred rupees, it may forthwith be sold by auction under the orders of the Superintendent of Police and the provisions of sections 503 and 504 shall, as nearly as may be practicable, apply to the net proceeds of such sale.” “Section 107. Attachment, forfeiture or restoration of property.- (1) Where a police officer making an investigation has reason to believe that any property is derived or obtained, directly or indirectly, as a result of a criminal activity or from the commission of any offence, he may, with the approval of the Superintendent of Police or Commissioner of Police, make an application to the Court or the Magistrate exercising jurisdiction to take cognizance of the offence or commit for trial or try the case, for the attachment of such property. (2) If the Court or the Magistrate has reasons to believe, whether before or after taking evidence, that all or any of such properties are proceeds of crime, the Court or the Magistrate may issue a notice upon such person calling upon him to show p. 10 p. 10 cause within a period of fourteen days as to why an order of attachment shall not be made. (3) Where the notice issued to any person under sub- section (2) specifies any property as being held by any other person on behalf of such person, a copy of the notice shall also be served upon such other person. (4) The Court or the Magistrate may, after considering the explanation, if any, to the show-cause notice issued under sub- section (2) and the material fact available before such Court or Magistrate and after giving a reasonable opportunity of being heard to such person or Provided that if such person does not appear before the Court or the Magistrate or represent his case before the Court or Magistrate within a period of fourteen days specified in the show-cause notice, the Court or the Magistrate may proceed to pass the ex parte order. (5) Notwithstanding anything contained in sub-section (2), if the Court or the Magistrate is of the opinion that issuance of notice under the said sub-section would defeat the object of attachment or seizure, the Court or Magistrate may by an interim order passed ex parte direct attachment or seizure of such property, and such order shall remain in force till an order under sub-section (6) is passed. (6) If the Court or the Magistrate finds the attached or seized properties to be the proceeds of crime, the Court or the Magistrate shall by order direct the District Magistrate to rateably distribute such proceeds of crime to the persons who are affected by such crime. (7) On receipt of an order passed under sub-section (6), the District Magistrate shall, within a period of sixty days p. 11 p. 11 distribute the proceeds of crime either by himself or authorise any officer subordinate to him to effect such distribution. (8) If there are no claimants to receive such proceeds or no claimant is ascertainable or there is any surplus after satisfying the claimants, such proceeds of crime shall stand forfeited to the Government.” ANALYSIS AND CONCLUSION 9. After hearing the learned counsel, it is apparent that the allegations are that the gold in question had been originally pledged with SBI Balugaon Branch by some loanees. The accused has taken this gold and pledged it as security with the petitioner company to take loan. So if the original loanee clears his/her loan and wants return of the gold, then the gold would have to be identified and returned to him/her. This is the reason why the safe custody of the gold is necessary so that it is not released in favour of any party without adjudication by a competent Court, after hearing the affected parties - SBI, IIFL and the original loanee, who may have repaid the gold loan. 10. It is therefore required to be seized and during seizure, videography of the gold is necessary and its identifying feature recorded. 11. If the loanee who had pledged the gold with SBI, Balugaon Branch clears his/her loan, it has to be returned to him/her. If the p. 12 p. 12 loanee fails to clear the loan taken from SBI and the gold is required to be auction, then also its identification is necessary. 12. In view of the provisions of Section 106 of the Cr.P.C., the I.O has the power to seize the gold. The seizure of the gold is necessary for the purpose of investigation, so I do not find any ground for quashing the letter / request of the I.O to produce the gold before him for the purpose of seizure. 13. So the I.O can seize the gold on production by the petitioner. But seizure does not mean that the gold has to be handed over to the I.O. 14. After following the proper procedure under the BNSS prescribed for seizure which includes taking photographs and videos of the procedure and preparing the seizure list, for safe custody of the gold, after seizure, the gold shall be given in the zima or temporary custody of the petitioner company on the condition that it will be produced before the Court as and when required. The zimanama shall contain the condition that it shall be subject to direction of the Court for its disposal. 15. For this purpose the petitioner has to give an undertaking that the gold will be produced as and when directed by the Court and the gold will not be sold, released / transferred or put up for auction p. 13 p. 13 without permission/direction of the Court and also furnish an indemnity bond equal to present value of the gold. 16. The CRLMP is disposed of with the aforesaid directions. 17. Urgent certified copy of this order be granted on proper application. …………………. (Savitri Ratho) Judge Orissa High Court, Cuttack Dated, the 31st March, 2026/Puspa/subhalaxmi SAHOO