The Wildlife (Protection) Act, 1972 as amended in 2002.

The Sloth bear (Melursus ursinus) is listed in Schedule I (Item 31 C) of the Wildlife (Protection) Act, 1972 by virtue of an amendment dated on November 24, 1986.
 
Section 39 of the Act states that any wild animal kept or bred in captivity or hunted in contravention of any provision of this Act or Rule shall be the property of the Government.

Further,  Clause (3) of Section 39 provides that “no person shall without the previous permission in writing of the Chief Wildlife Warden or the authorized officer acquire or keep in his possession, custody or control such government property.”

Sub Clause (2) of Section 40 of the Act relates to declarations and states that no person shall after the commencement of this Act, acquire, receive, keep in his control, custody or possession, sell, offer for sale any animal specified in Schedule I or part II of Schedule II except with the previous permission in writing of the Chief Wildlife Warden.

The  combined reading of section 39 and 40 makes it clear that the control, custody and possession of Sloth bear is illegal unless a  declaration has been made to the Chief Wildlife Warden. The Sloth bear in possession, control and custody of the Kalanders are government property and liable to be seized.