BEIJING - A police force in northeast China has been ordered to pay back 20 million yuan ($3.12 million) it illegally seized from a real estate company along with 830,000 yuan the money would have accrued in interest, in a Chinese legal precedent.

The Supreme People's Court (SPC) ruled on Wednesday that the provincial police department in Liaoning Province must return the money to the plaintiff, Beipeng Co Ltd in Shenyang, within 30 days.

China's State Compensation Law allows for interest to be returned, but this is the first time the clause has been applied by a court.

The court said more such rulings may follow now that a precedent has been set.