M/S MECTEC A SOLE PROPRIETARY FIRM / CONCERN, R/BY ITS PROPRIETOR SMT. NEENA W/O. SRI. KAMLESH SHAH and SRI. DINESH G. YANE DILIP ALIAS THAKOR DINESHJI V. STATE OF KARNATAKA R/BY ITS PRINCIPAL SECRETARY HOME DEPARTMENT and THE DIRECTOR GENERAL OF POLICE BENGALURU -01, KARNATAKA and THE SUPERINTENDENT OF POLICE KARAWAR CITY, UTTAR KANNADA and THE INSPECTOR OF POLICE YELLAPURA-581359 and THE STATION HOUSE OFFICER YELLAPUR POLICE STATION, SIRSI SUB-DIVISION-581359 UTTARA KANNADA, KARNATAKA

WP/101083/2021

AI Insights

The case involves a writ petition filed by M/S MECTEC, represented by its proprietor and a GPA holder, challenging the legality of the seizure of Rs. 50,00,000 from petitioner No. 2 on 13.01.2021. The petition argued that the seizure was without authority, illegal, and violated provisions of the Income Tax Act, 1961, as well as Articles 14 and 300-A of the Constitution of India. Initially, criminal proceedings were initiated against the petitioners, which were later quashed by a Co-ordinate Bench. The primary legal contention revolved around the unauthorized seizure of the cash, which was a significant amount linked to the petitioners' business activities.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 824250 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 15-12-2025
• Assessment Year: misc
• Laws Referred To: Constitution of India, Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: GIRIJA HIREMATH
• Assessee Lawyers: VIVEK REDDY
• Keywords: Illegal seizure; Seizure of cash; Ultravires; Violation of provisions; Writ petition
• Section: 14; 226; 227; 300-A

Judgement Text

" - 1 - HC-KAR NC: 2025:KHC-D:18136 WP No. 101083 of 2021 IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH DATED THIS THE 15TH DAY OF DECEMBER 2025 BEFORE THE HON'BLE MR. JUSTICE M.NAGAPRASANNA WRIT PETITION NO. 101083 OF 2021 (GM-RES) BETWEEN: 1. M/S MECTEC A SOLE PROPRIETARY FIRM / CONCERN, R/BY ITS PROPRIETOR SMT. NEENA W/O. SRI. KAMLESH SHAH AGED ABOUT 55 YEARS, R/AT NO:79, ANUSHTAN BUNGLOWS, SOLA, AHMEDABAD, GUJRAT-380060 R/BY ITS G.P.A. HOLDER SRI. KAMALESH SHAH S/O. RAJANIKANTH SHAH AGE: 58 YEARS, OCC: AGRICULTURE PRODUCE BUSINESS, R/A NO: 79, ANUSHTAN BUNGLOWS, SOLA, AHMEDABAD, GUJRAT-380060 2. SRI. DINESH G. YANE DILIP ALIAS THAKOR DINESHJI S/O. SRI. PRABHATJI AGE: 34 YEARS, R/A: NO.1-34, MORIYAVAS, AMUDHAMUDH, TA: UNJHA, MEHSANA DISTRICT, GUJARAT 380060 ALSO RESIDING AT NO.13, GURUKRUPA, KAPILESHWAR COLONY, BELAGAVI-590001 KARNATAKA …PETITIONERS (BY SRI. VIVEK REDDY, SENIOR COUNSEL FOR SRI.HARISH S MAIGUR, ADVOCATE) Printed from counselvise.com Digitally signed by VISHAL NINGAPPA PATTIHAL Location: High Court of Karnataka, Dharwad Bench, Dharwad - 2 - HC-KAR NC: 2025:KHC-D:18136 WP No. 101083 of 2021 AND: 1. STATE OF KARNATAKA R/BY ITS PRINCIPAL SECRETARY HOME DEPARTMENT, SECRETARIAT VIDHANA SOUDHA, BENGALURU-01 2. THE DIRECTOR GENERAL OF POLICE BENGALURU -01, KARNATAKA 3. THE SUPERINTENDENT OF POLICE KARAWAR CITY, UTTAR KANNADA 581344 4. THE INSPECTOR OF POLICE YELLAPURA-581359 5. THE STATION HOUSE OFFICER YELLAPUR POLICE STATION, SIRSI SUB-DIVISION-581359 UTTARA KANNADA, KARNATAKA …RESPONDENTS (BY SMT. GIRIJA S. HIREMATH, HCGP) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO ISSUE A WRIT DECLARING THAT THE ACT OF SEIZURE OF RS. 50,00,000/- OF CASH FROM THE PETITIONER NO. 2 ON 13.01.2021 IS WITHOUT AUTHORITY OF LAW AND IS ILLEGAL, ULTRAVIRES AND VIOLATIVE OF THE PROVISIONS OF INCOME TAX ACT, 1961 AND ARTICLE 14 AND 300-A OF CONSTITUTION OF INDIA AND ETC., THIS WRIT PETITION COMING ON FOR PRELIMINARY HEARING IN ‘B’ GROUP THIS DAY, ORDER WAS MADE THEREIN AS UNDER: Printed from counselvise.com - 3 - HC-KAR NC: 2025:KHC-D:18136 WP No. 101083 of 2021 ORAL ORDER (PER: THE HON'BLE MR. JUSTICE M.NAGAPRASANNA) 1. Heard the learned senior counsel Sri. Vivek Reddy appearing for the petitioners. 2. Criminal law was set into motion against the petitioners in Crime No.7 of 2021. The said crime stood challenged in Criminal Petition No.100598 of 2022 and the Co- ordinate Bench has quashed the proceedings against the petitioners in Crime No.7 of 2021. When the crime was registered, an amount of ₹ 50,00,000/- had been seized. The said amount is not yet released, is the contention. 3. The learned HCGP places on record the document which depicts that on 14.08.2025, an amount of Rs.50,00,000/- has been released to the petitioners. 4. In that light, nothing further would survive in the subject petition. In the event, the release has not yet happened, Printed from counselvise.com - 4 - HC-KAR NC: 2025:KHC-D:18136 WP No. 101083 of 2021 it is open to the petitioner to revive these proceedings, at which point in time, the matter would be viewed seriously. Ordered accordingly. Sd/- (M.NAGAPRASANNA) JUDGE Kmv/CT CNB Printed from counselvise.com "