Jun 06, 2025 06:40 AM IST
An October 2021 circular requires police to deposit cash seized in cases as FDs in national banks and jewellery and other precious items in bank lockers
The recent theft of gold and ₹80 lakh cash from a Delhi Police Special Cell malkhana (store room) was due to alleged procedural lapses, as those responsible failed to deposit the seized money and jewellery in banks, as mandated by police guidelines, officials aware of the matter said on Thursday.

An October 2021 circular, seen by HT, requires all station house officers and investigating officers to deposit cash seized in cases as fixed deposits in national banks, and jewellery and other precious items in bank lockers.
“The circular, which was prepared with the approval of the then Delhi Police chief, Rakesh Asthana, was issued following the order of a Delhi court that had accepted the application by an IO and the then SHO of the Palam Village police station, allowing them to transfer ₹96,340 in cash — seized during a raid on a gambling racket — from the malkhana to a fixed deposit account to be opened in the name of the police station,” said a senior police officer, familiar with that matter.
The alleged lapse has come to light in the wake of the recent arrest of head constable Khursheed for allegedly stealing ₹80 lakh cash and two boxes of gold jewellery from a malkhana at Lodhi Road.
When contacted, senior special cell officers did not comment on why efforts were not made to deposit the seized cash and jewellery in bank lockers. However, an officer from the department, who asked not to be named, said that the stolen cash and jewellery were seizures from old cases and Khursheed knew that those would not be produced in courts.
“The stolen cash and jewellery may not have been stolen had they been deposited in banks. Someone from the department should be held accountable for not following the circular and the person should be asked to give a written explanation,” the officer said.
