In Brief
The appellant's 240 kg of gold, seized in 1965 from his father's house under the Defence of India Rules for non-declaration, was confiscated. After the rules were repealed and replaced by the Gold (Control) Act, the matter remained pending. The High Court remitted the case for fresh adjudication. When a fresh confiscation order offered to redeem the gold by paying Rs 2.5 crores, the Tribunal reduced this to Rs 12.5 lakhs (the value at seizure date). The Supreme Court held that the redemption fine should equal the gold's market value on the date the option to pay was given (Rs 11.04 crores, not the seizure date value). The Court also directed payment of 10% annual interest to compensate for the 50-year delay. The case was allowed, with the appellant entitled to redeem the gold on these terms.
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