What the Court Directed:

The Supreme Court has issued guidelines for the conditional release of vehicles seized under prohibition law enforcement actions. This circular communicates binding judicial precedent to all enforcement officers.

Key Conditions for Vehicle Release:

1. Bank Guarantee Required: Vehicle owner must furnish bank guarantee for 60% of the vehicle's value

2. Property Security Required: Additional security of immovable property worth 60% of the vehicle's value (making total security = 120% of vehicle value)

3. Strict Prohibitions During Pendency: The appellant/owner shall NOT:

   • Dispose of the vehicle
   • Sell the vehicle
   • Encumber the vehicle
   • Create any third-party rights over the vehicle
   • Part with physical possession of the vehicle

   • Temporal Scope: These conditions remain in force pending final disposal of the criminal matter

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     PRACTICAL IMPLICATIONS:

     For Enforcement Officers:

     • When vehicles are seized in prohibition cases and court orders release, ensure dual security (bank guarantee + property security) is obtained
     • Monitor compliance with non-disposal conditions
     • Vehicle registration documents should reflect pending criminal proceedings

     For License Holders/Offenders:

     • Vehicles can be recovered before case conclusion, but at significant security cost (120% value)
     • Owner retains physical possession but cannot alienate or encumber the vehicle
     • Violation of conditions may result in forfeiture and contempt proceedings

     Authority: Supreme Court of India (binding precedent under Article 141 of Constitution of India)

     Effective Date: From date of Supreme Court order (matters decided in 2003)

     Circular Purpose: To ensure uniform application of Supreme Court guidelines across Maharashtra Excise Department enforcement actions

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     Note: This is a judicial directive communicated via Commissioner Circular, not a rule amendment. All subordinate officers must comply with these conditions when processing applications for return of seized vehicles in prohibition-related offenses.