Gold Jewellery of Iranian Nationals seized at the airport was sold even before confiscation by the Customs.

Judgment dated 21.12.2023 of the Division Bench in Writ Petition No.467 of 2023 of Leyla Mohmoodi and another Vs. The Additional Commissioner and others.

Important point – Whether the Customs Department to sell / dispose of seized gold jewellery of the petitioners, without prior notice and and before order of confiscation under Section 111 of the Customs Act, 1962?

On 14.1.2018, on arrival of the petitioners who are Iranian nationals, at CSMI Airport, Mumbai and wearing golden bangles of 1028 grams.   They were intercepted and the bangles were seized by the customs.

On 4.4.2018, the Customs issued a notice for an action of disposal of seized gold jewellery.  The application under Section 110(1B) for disposal of the gold jewellery was allowed by the Magistrate on 18.5.2018.

However, on 1.8.2018, the SBI had sold the jewellery  without notice to the petitioners and even before the show cause notice dated 6.7.2018 was adjudicated.

On 18.1.2019, the order-in-original was passed without hearing the petitioners and penalty was imposed on both the petitioners.

On 28.1.2010, the order in appeal was passed that the petitioners had smuggled the gold.   However, the Revisional Authority had redeemed the jewellery to the petitioner vide order dated 23.1.2022.

The request letters of the petitioners for return of jewellery did not yield any response.    The petitioners, therefore, filed the writ petition.

It is difficult to imagine as to what could be the reason for the Customs Officers to dispose of the gold hurriedly and with such lightening speed and by throwing to the wind the norms of fairness and reasonableness.

The writ petition was allowed.