The money, which with interest is now worth �3.5m, was found in the attic of Brian Charrington.

The court heard that the money was believed to have come from the proceeds of cocaine smuggling in 1991.

A High Court judge granted the order on Wednesday to the new Assets Recovery Agency, using the agency's powers under the 2002 Proceeds of Crime Act.

Money laundering

Mr Justice Collins rejected a claim by Curtis Warren, one of Britain's most notorious drug barons, that the money was his.

Warren, 41, is serving a 12-year sentence in Holland for masterminding a �125m smuggling ring.

The judge said Warren was now claiming to have masterminded the 1991 operation, though he was acquitted at a trial in England, and that the money was therefore his.

The money was found in various currencies in the attic of the Middlesbrough home of Charrington.

Charrington had said that he had been involved in laundering the money for Mario Halley, another man involved in the drugs smuggling conspiracy.

Jane Earl, director of ARA, said after the result: "We are absolutely delighted. This is the biggest civil recovery order we have obtained to date and marks the start of a number of cases which will be coming to court over the next few months.