Nearly three decades after more than ₹1.33 crore was recovered during the investigation into the fodder scam, a special CBI court in Ranchi has ordered that the seized money be transferred to the Jharkhand government.
The amount, recovered from the residence of government witness Dipesh Chandak in January 1997, had remained tied to the legal proceedings for years.
Court Orders Release of Seized Amount
CBI Special Judge Akhilesh Kumar Tiwari has directed that ₹1 crore 33 lakh 60 thousand be paid to the Jharkhand government.
The money was recovered during searches at Chandak's residence on January 7 and 10, 1997, while investigators were examining alleged financial irregularities connected with the fodder scam.
According to the case record cited by the CBI, Chandak later became a government witness.
The issue of the money's disposal continued even after the amount was deposited into a government bank account.
Money Had Been Deposited in 2022
The seized amount was deposited into a government bank account on January 4, 2022, following an earlier court direction.
During the proceedings, the court was informed that Chandak had not made a claim over the money.
The CBI subsequently argued that the amount should be transferred to the Jharkhand government since it had remained in a government account for a considerable period and no claim had been made by the person from whose premises it was recovered.
The special court accepted the request and ordered the transfer of the entire amount to the state government.
Case Linked to ₹95.99 Crore Alleged Illegal Withdrawals
The matter relates to RC 52A/96, one of the cases arising from the wider fodder scam investigation.
The CBI has alleged that approximately ₹95.99 crore was illegally withdrawn from treasuries in undivided Bihar between 1981 and 1994.
Investigators alleged that forged allocation letters, supply vouchers and bills were used in connection with the withdrawals.
The money recovered from Chandak's residence became part of the evidence and financial proceedings associated with the case.
Why the Seized Money Remained in Court Proceedings
The long delay in disposing of the money reflects the complexity of financial cases involving multiple transactions, documentary evidence and court proceedings.
After Bihar was divided and Jharkhand was created in 2000, several fodder scam-related matters continued through courts in Jharkhand. Questions surrounding seized assets and money therefore remained connected with the wider judicial process.
The movement and eventual disposal of seized funds in cases of this nature can require detailed examination of financial records, ownership claims and the underlying transactions. Such work is relevant to a Financial Investigation when tracing funds and establishing their connection with alleged financial irregularities.
Nearly 29 Years After the Seizure
The latest order brings a long-pending issue concerning the ₹1.33 crore to a conclusion at the court level.
The money that was recovered in January 1997 and later deposited into a government bank account will now be transferred to the Jharkhand government under the special court's direction.
The development is separate from the broader legal history of the fodder scam, which involved multiple cases, accused persons, alleged fraudulent withdrawals and prolonged judicial proceedings.