Authorities must strictly adhere to statutory time limits for the detention of seized assets. Extensions require objective, valid reasons recorded in writing and timeous communication to the party. Failure to comply, or attempts to overreach judicial proceedings, renders detention illegal and warrants compensatory costs against the state.

JUDGMENT :

1. Heard Sri Vineet Kumar Singh, Advocate holding brief of Shaikh Mohd Mujib Ur Rahman, learned counsel for the petitioners, Sri Krishna Agarawal and Sri Anant Kumar Tiwari, learned counsel for the respondents.

2. Present petition has been filed for the following relief:

"I. Issue a writ, order or direction in the nature of Mandamus commanding the respondents to forthwith release the seized cash amounting to Rs.25,20,000/-, seized vide Seizure memo dated 20.08.2025, to the petitioner, marked as Annexure No.1 to this writ petition."

3. From the first date itself, the petitioners have been relying on the fact that cash Rs.25,20,000/- had been seized from them, by the customs authorities, on 20.08.2025. Six months passed on 19.02.2026. Yet, neither any show cause notice was issued to the petitioner in terms of the provisions contained in The Customs Act, 1962 (hereinafter referred to as 'the Act'), nor any time extension order came to be passed and communicated to them before the end date. The writ petition itself was presented on 07.04.2026. On 10.04.2026 we passed the below quoted order:

"1. Petitioners claim the release of the cash seized more than six months ago.

2. Shri Krishna Agarwal, learned counsel for the revenue authorities prays for and is granted ten days time to obtain clear written instructions as to why the seized cash has not been released and if statutory proceeding has been drawn within limitation.

3. Put up as fresh on 24.04.2026 showing the name of Shri Krishna Agarwal and Shri Anant Kumar Tiwari both as counsel for the respondent".

4. On the next date, Sri Krishna Agarwal, learned counsel for the DRI relied upon a document dated 18.02.2026 described to be the order passed under Section 110 (2) of the Act. Its copy was taken on record and learned counsel for the petitioners granted time to complete the instructions. For ready reference the said communication reads as below:

"A case was registered for seizure of 1497.3 gram of Gold on 13.08.2025. SCN on this case was issued on 12.02.2026, which was within the mandated timeline. In the follow up investigation, searches were conducted in Bareilly at the premises of M/s. Sanklap Golds Pvt. Ltd. and M/s KB Gold & Bullions, Bareilly on 20 August, 2025 and 3-4 September 2025. The search details are as under;

1. During the search proceedings at the premises of M/s Sanklap Golds Pvt. Ltd. and M/s KB Gold & Bullions, Bareilly on 20 August, 2025 resulted in recovery of 25.2 lakhs cash from Chandra Kamal Bansal and his son Shri Salabh Bansal came inside the premises during search proceedings. The said cash was seized for further investigation under the provisions of Customs Act, 1962.

2. During the search proceedings at the premises of M/s. Sanklap Golds Pvt. Ltd. and M/s. KB Gold & Bullions, Bareilly on Sept, 2025 resulted recovery of 8 suspected to be Fake Indian Currency Notes (FICN) notes, each in denomination of Rs. 500/-, having total face value of Rs. 4,000/-, as they appeared to be counterfeit. For examination of the notes, an application has been submitted before CJM Customs Court requesting approval to send it to Currency Note Press in Nasik on 08 September 2025 with continuous follow up being conducted with SPP at regular intervals w.r.t. status of approval but court permission is still pending.

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