A federal judge in the US has ruled that Nebraska police must return $1 million to an exotic dancer.

Tara Mishra, 33, had been saving up the money $1 at a time over her 15 years as a dancer. The money was meant to be a way of starting her own business and retiring from dancing, said District Judge Joseph Bataillon.

The authorities confiscated money back in March 2012 when they pulled over Mishra’s two friends for speeding according to court documents.

Her friends, Rajesh and Marina Dheri, had been given the cash so that they could buy a nightclub with Mishra owning half of the business according to the judge.

Mishra had packaged the money in $10,000 bundles tied with hair bands and placed in plastic bags. They were stashed in the boot of a rented car.

The police seized the money, suspecting that it might be drug related and took the two Dharis into custody but didn’t find any evidence of drug activity.

“The government failed to show a substantial connection between drugs and the money,” wrote US the judge. “The dog sniff is inconsequential…The court finds the Mishras’ story is credible…"

"Ms. Mishra did have control over the money and directed the Dheris to deliver the money to New Jersey for the purchase of the business.”

Bataillon ordered that Mishra receive payment in the value of $1,074,000, with interest.