India, April 24 -- The Bombay High Court has directed the Reserve Bank of India to exchange demonetised '500 notes worth '2 lakh that were seized from a man during demonetisation and returned to him after the prescribed period.

In its order on Wednesday, the court's Nagpur bench of Justices Urmila Joshi-Phalke and Nivedita Mehta said the man cannot be held at fault as the notes were seized by the police before the cut-off date and remained in their custody till after the exchange window closed.

The directive to the RBI was passed on a petition filed by one Girish Malani.

"The petitioner cannot be placed in a disadvantageous position on account for an act for which he is not responsible," the court said.

In his petition, Malani said he...