The Allahabad High Court has ordered the Income Tax authorities to compensate a petitioner after jewellery seized during tax proceedings went missing while in the custody of a respondent bank. The judge directed the department to verify the petitioner’s valuation and make payment within four weeks, warning that failure to comply would attract penal interest.

The order came while hearing a petition by Sanjay Kumar Jain, who sought payment of Rs 9,464,844 along with interest at 9 percent per annum from July 30, 2025, and additional damages for the mental agony, harassment and financial distress he said he suffered because of what he described as negligence and malafide conduct by the authorities and the bank. The court noted that the jewellery had been seized by the Income Tax authorities a

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