(1) Every Police Officer shall undertake temporary charge of the following movable articles,-

(i) All movable articles found by him or transferred to him or in his possession which are not claimed by any one or refused to take over by anyone.

(ii) Movable articles found lying in any public street, which are not being removed by anyone within a reasonable time, despite the owner or the person in charge thereof have given direction to remove the same by a notice affixed on or near the said articles.

(2) The Police Officer undertaking the charge of the articles under sub-section (1) shall furnish the details in respect of the article and its value to the District Police Chief and to the Executive Magistrate having jurisdiction after getting its approximate market value in writing assessed by a respectable merchant of that area who usually deals with such articles.

(3) If such article is subject to speedy natural decay or is live-stock, then the Station House Officer may forthwith sell the same in public auction.

(4) The District Police Chief shall issue a proclamation, specifying the details of the articles undertaken in charge under sub-section (1), requiring any person who may raise a claim thereof to appear before the officer specified in the proclamation within thirty days from the date of such proclamation and to establish his claim.

(5) The District Police Chief, may on satisfying the right of any person to the possession of the property specified in the proclamation, order the same to be released to him, after realizing the fees fixed for its seizure and custody.

Provided that such order shall not in any manner affect the legal right of another person to recover such article partially or fully from the person who got possession of such article by such order.

(6) The District Police Chief may obtain such security as he thinks proper from the person to whom the said article is handed over under sub-section (5).

Provided that the District Police Chief may take action under sub-section (8) for any delay of more than two days in taking away the article in respect of which the right of possession was given without reasonable grounds.

(7) If no person establishes his claim on such article within the period specified in the proclamation, the article may be used in the Police Department in lieu of any article which was required to be ordinarily purchased for official purpose or such property may be sold in auction under the orders of the District Police Chief and the sale proceeds thereof shall be credited to the Criminal Justice miscellaneous Expenses Fund.

(8) (i) The State Police Chief may fix the norms from time to time for fixing the rates of fee to be levied for keeping such articles taking into account the size and nature of such article undertaken in the charge of the police under sub-section (1),

(ii) The District police Chief may, on any day, sell the said article in auction after the fee to be levied from the claimant for keeping such article becomes half the market value of the article.

Provided that no such charges shall be collected form the the actual owner of the article for the first seven days after the article was undertaken by the Police or for any period after the date of such article being taken for Government use.

(9) Where an unclaimed article had been sold in auction and later it is found that the actual owner had been wrongfully dispossessed of the article by another person and at the appropriate time he had reported that matter legally to the concerned authorities in time, the entire sale proceeds of such article shall be returned to the actual owner without deducting any amount as fees.

(10) No Police Officer shall keep in custody any unclaimed live-stock or article liable to speedy decay for more than one day and such officer shall not be held liable for any loss caused to anyone by reason of conducting auction of such articles forthwith.

(11) No Police Officer shall make good, any loss, real or notional, caused to anybody by reason of the conducting auction as such of any unclaimed article referred to in sub-section (1) after thirty days from the date on which the article came into the possession of the police.