In Brief
A residential search in 1965 led to seizure of 240 kilograms of undeclared gold. After confiscation and over 50 years of litigation involving multiple statutory regimes (Defence of India Rules, Gold Control Ordinance, and Gold Control Act), the Supreme Court held that the confiscation proceedings must be governed by the Defence of India Rules under which the gold was seized, not the subsequently enacted Gold Control Act. The redemption fine should equal the market value of gold on the date the owner exercises the option to pay it (not the seizure date), calculated at Rs. 11.04 crores. The Court also awarded interest at 10% per annum to prevent unjust enrichment due to the extraordinary delay.
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