NAGPUR City Police have directed all the police stations and Crime Branch units to immediately inform the Income Tax Department whenever they seize cash or valuables worth more than Rs 10 lakh. The order has been issued by Deputy Commissioner of Police (Detection) Deepak Agrawal. It follows a letter from the Principal Director of Income Tax (Investigation), Nagpur. The directive has been issued to ensure compliance with the Supreme Court’s directions. Under the new instructions, police officers must report every such seizure to the Income Tax Department without delay.

 

The rule applies to all police actions. These include investigations, raids, searches, nakabandis and other law enforcement operations. The Income Tax Department said many cases of large cash seizures were not being reported earlier. This affected action under the Income Tax Act, 2025. In a letter to Police Commissioner Vishwas Nangre Patil, Principal Director of Income Tax (Investigation) Vilas V Shinde referred to a Supreme Court judgement in the case of RBANMS Educational Institution vs B Gunashekar & another.

 

The apex court had observed that whenever authorities recover large amounts of cash or valuables that may indicate tax violations, the Income Tax Department should be informed immediately. This allows the department to examine whether action under the Income Tax Act is required. Following the communication, DCP Agrawal has instructed all police inspectors, Crime Branch Units 1 to 6 and all specialised squads to strictly follow the procedure. Copies of the order have also been sent to all Deputy Commissioners of Police, the Economic Offences Branch and the Traffic Branch.

 

The Income Tax Department has appointed Additional Director of Income Tax (Investigation) Sheetal Sarin as the Nodal Officer to receive such information from the police. Police officials said the new system will strengthen coordination between the police and the Income Tax Department. They said it will help detect cases involving suspected tax evasion, undisclosed income and other financial irregularities at an early stage.