'Invested Substantial Savings': Delhi High Court Permits Redemption Of Labourer's Gold Bar Seized By Customs

The Delhi High Court recently permitted a labourer, working in the middle-east, to redeem gold bars confiscated by the Customs Department, after a four-year delay.

In doing so, a division bench of Justices Prathiba M. Singh and Renu Bhatnagar took note of the Petitioner's financial status, which purportedly prevented him from paying the redemption fine in time.

“Bearing in mind the fact that the Petitioner is from an economically weaker section, is working as a labourer in Saudi Arabia and may have invested his substantial savings into this gold bar, the Court is inclined to allow redemption in terms of the Order-in-Original,” it ordered.

The Court was dealing with a petition moved by one Monish Mohammed, seeking release of the gold bar weighing 116 grams detained by the Customs Department back in August 2021 upon his arrival to India.

An order confiscating the gold bar was later passed, with an option to redeem the same subject to fine Rs 62,000/- along with applicable duty.

The offer of redemption was stipulated to remain valid for a period of 120 days.

Petitioner submitted that he could not earlier redeem the gold as he did not have the wherewithal then. However, now that he is willing to pay the said redemption fine, penalty and applicable customs duty, the said option is no longer available to him.

Granting him relief, the High Court said, “Payment in terms of the Order in Original be made by the Petitioner and upon the said payment being made, the gold item shall be released, after proper verification.”

Appearance: Dr. Ashutosh and Ms. Fatima Bano, Advs. for Petitioner; Mr. Aditya Singla, SSC CBIC, Ms. Arya Suresh Nair, Adv for Respondent

Case title: Monish Mohammed v. Commissioner Of Customs

Case no.: W.P.(C) 2376/2024

Click here to read order