Mere Possession Of Large Amount Of Cash Is Not An Offence U/S 98 Of Karnataka Police Act: High Court

The Karnataka High Court ruled that mere possession of large cash isn't an offense under Karnataka Police Act without evidence of illicit means. Justice Krishna Dixit quashed proceedings against a businessman carrying ₹28 lakh during interstate travel. The judgment clarifies that police must demonstrate probable unlawful origin before invoking Section 102 CrPC seizure powers. This checks arbitrary harassment of legitimate cash transactions in a digital economy transition. However, the court noted unexplained cash may still attract income tax scrutiny under different laws. The ruling balances crime prevention with individual property rights, requiring reasonable suspicion for cash seizures. Police departments may need revised guidelines for handling large cash movements post-demonetization.