THE director of a bus company has appeared in court as part of legal proceedings to force police to hand back £52,000 seized from her Rishton home.

The woman, who gave her name as Lady Suzanne Bailey, of Blackburn, will argue that the police have no reason to retain the money when a full hearing is held next week.

The money was seized under the Proceeds of Crime Act after a raid at Bailey's home address, The Turrets, Blackburn Road, on November 28. Officers also executed search warrants at Appleby Business Centre, in Appleby Road, and Daisyfield Business Centre.

Mrs Bailey was arrested along with David Bailey, both directors of Catchmebus.com and Buzy Buz, and a manager with the company. All three were released on police bail and inquiries into suspected insurance fraud are continuing.

The police are allowed to keep cash seized if they can show that it is recoverable property obtained as a result of criminal conduct. The interim order obtained by the police expires after three months on February 27 but it can be extended by three months at a time for a maximum period of two years.

Documents and computers were also recovered in the raids and have been analysed by police.

The police involvement came after the company withdrew all its services on without notice, leaving passengers stranded at bus stops. Before the arrests, a company spokesman explained the decision to cease operating was made in light of "external factors."

Blackburn Borough Transport Ltd and Lancashire County Council have taken over the affected routes.

The directors of the firm also own the name Blackburn Transport Ltd, which is similar to the town's major bus company, Blackburn Borough Transport Ltd.