Searching Case Laws & Precedent on Legal Query.....!
Scanned Judgements…!
Searching Case Laws & Precedent on Legal Query.....!
Scanned Judgements…!
In an era of global travel and trade, incidents involving undeclared foreign currency at airports or borders are increasingly common. A frequent question arises: Foreign currency bailable up to 1 crore bailable under customs act? If you're facing a customs inquiry or arrest related to foreign currency, understanding the bailability of such offenses can be crucial. This post explores the legal framework under the Customs Act, 1962, particularly Section 135, highlighting when these offenses remain bailable, arrest thresholds, and key exceptions. Note: This is general information; consult a qualified lawyer for case-specific advice.
Generally, offenses under Section 135 of the Customs Act, 1962, involving foreign currency—such as smuggling or undeclared possession—are bailable unless they fall into specific non-bailable categories under Section 104(6). This includes undeclared imports/exports where the market price exceeds one crore rupees or involves notified prohibited goods. Thus, foreign currency cases are typically bailable up to a market value of ₹1 crore, with arrests restricted to exceptional circumstances, like values exceeding ₹20 lakhs for outright smuggling. Mohd. Tufial VS Union of India - 2023 0 Supreme(All) 611Mohammad Imran VS Union of India - 2024 0 Supreme(All) 2263Pulikkippoyil Sharafudheen VS Superintendent of Customs (Aiu), Air Customs Calicut International Airport Represented By Its Standing Counsel - 2023 0 Supreme(Ker) 405
This framework protects individual liberty while allowing customs authorities to act against high-value or prohibited smuggling.
These provisions emphasize caution, aligning with judicial rulings that Section 135 offenses are bailable by default. Om Prakash VS Union of India - 2011 0 Supreme(SC) 961
The Customs Act clearly distinguishes bailable from non-bailable offenses. Section 104(6) lists exceptions, including: (c) import or export of any goods which have not been declared... and the market price of which exceeds one crore rupees. Mohd. Tufial VS Union of India - 2023 0 Supreme(All) 611Mohammad Imran VS Union of India - 2024 0 Supreme(All) 2263Pulikkippoyil Sharafudheen VS Superintendent of Customs (Aiu), Air Customs Calicut International Airport Represented By Its Standing Counsel - 2023 0 Supreme(Ker) 405 Foreign currency is often treated as goods in smuggling contexts, especially under legacy FERA restrictions now under FEMA, making undeclared amounts subject to this. Remo Paul Altoe VS Union Of India - 1977 0 Supreme(SC) 309Om Prakash VS Union of India - 2011 0 Supreme(SC) 961
Courts have affirmed: offences under Section 135 of the Customs Act, 1962, are bailable. Om Prakash VS Union of India - 2011 0 Supreme(SC) 961 This holds for values up to ₹1 crore, akin to restricted goods like gold below that threshold. Mohammad Imran VS Union of India - 2024 0 Supreme(All) 1816
Foreign currency faces restrictions similar to prohibited or restricted items. CBEC circulars guide arrests in bailable cases: arrest in respect of an offence... categorized as bailable offence, should be effected only in exceptional situations which may include... (b) Cases of outright smuggling of high value goods such as... offence involving foreign currency where the value of offending goods is Rs.20,00,000/-... or more. Pawan Kumar Kaushik S/o. Late Sardar Mal Kaushik VS Union of India - Notice To Be Served Through - 2019 0 Supreme(Guj) 977 Post-arrest, bail under Section 104(3) is routine if offered. Om Prakash VS Union of India - 2011 0 Supreme(SC) 961
In practice, for undeclared currency below ₹1 crore, offenses remain bailable, with arrests needing justification beyond routine checks.
Customs officers may arrest under Section 104(1) for Section 135 offenses, but powers are limited: the power of arrest was circumscribed by objective considerations and could not be exercised on whims. Om Prakash VS Union of India - 2011 0 Supreme(SC) 961 Guidelines stress: arrests only where facts and situations... demand such action, like organized smuggling. Pawan Kumar Kaushik S/o. Late Sardar Mal Kaushik VS Union of India - Notice To Be Served Through - 2019 0 Supreme(Guj) 977 For low-value foreign currency, bail is standard.
While most cases up to ₹1 crore are bailable, exceptions apply:
Recent cases illustrate boundaries. In one, foreign currency recovery led to proceedings under Sections 135(1)(A)(B), noting evasion above ₹50 lakhs may escalate under Section 108, though distinct from Section 135 bailability. MOHAMMAD JAVED S/O ABDUL JABBAR B/C MUSLIM vs UNION OF INDIA Another involved ₹10.94 crore concealed currency, resulting in prosecution under Section 135 and COFEPOSA detention: A show cause notice... proposing confiscation of foreign currency valued at INR 10,94,05,047.50/- under Section 113(d), (e) and (h)... Complaint to prosecute... under Section 135. Mohammad Seddiq Yousufi VS Union of India Through Secretary, Ministry of Finance, Department of Revenue - 2020 Supreme(Del) 149 The court upheld detention based on authority's subjective satisfaction and the necessity to prevent the detenu from engaging in prejudicial activities, highlighting risks in ultra-high-value smuggling. Mohammad Seddiq Yousufi VS Union of India Through Secretary, Ministry of Finance, Department of Revenue - 2020 Supreme(Del) 149
Judicial precedents reinforce bailability: Accordingly, on the same reasoning, the offences under the Customs Act, 1962 must also be held to be bailable... Om Prakash VS Union of India - 2011 0 Supreme(SC) 961 Circulars don't bind bailability but guide discretion. Pawan Kumar Kaushik S/o. Late Sardar Mal Kaushik VS Union of India - Notice To Be Served Through - 2019 0 Supreme(Guj) 977 For restricted goods like gold, values below ₹1 crore keep offenses bailable. Mohammad Imran VS Union of India - 2024 0 Supreme(All) 1816
In COFEPOSA contexts, high-value cases (e.g., over ₹10 crores) justify preventive detention beyond standard bail, as fresh investigations supported subjective satisfaction. Mohammad Seddiq Yousufi VS Union of India Through Secretary, Ministry of Finance, Department of Revenue - 2020 Supreme(Del) 149
Legal professionals should reference precise valuations for threshold defenses.
Stay informed, declare currency per FEMA regulations, and consult experts promptly. This overview draws from statutory provisions and rulings but isn't exhaustive legal advice.
One Crore shall be non-bailable and as per Section 104(7) Customs Act all the other offences are bailable except provided in sub-section (6) of Section 104 Customs Act. 27. ... One Crore was recovered but total value of the gold recovered from the possession of applicants and two other co-accused persons was more than Rs. One Crore, therefore, considering the provisions of Customs Act applicants c....
notes, after clubbing previous transactions, was over Rs.1 crore, and therefore the offence was bailable. ... It is impermissible under the Customs Act to carry such prohibited items under the provisions of Sections 132 and 135(1)(A), 135(1)(B), 135(1)(C) of the Act of 1962. ... The Customs Department, based on these calculation-sheets, allegedly concluded that those pertained to foreign #HL_START....
(i) of the Customs Act, 1962 (“the Customs Act”), were non-bailable. ... Customs Act. ... The notifications issued by the Director General of Foreign Trade under Section 5 of the Foreign Trade (Development and Regulation) Act, 1992, render the seized goods prohibited goods for the purpose of Clause (b) of sub-Section (6) of Section 104 of the Customs Act. ... Incontrovertibly, th....
They face an indictment for the offence under section 135 of the Customs Act, 1952 (for short 'the Act') alleging import of gold, the market price of which exceeds Rupees One Crore. ... The question as to whether the offences under the Act are bailable or not is specified under section 104(6) of the Act. Since section 104(1), (6) and (7) of the Act are relevant, they are extracted as below: “104. ... worth more than Rupees One #HL_S....
They face an indictment for the offence under section 135 of the CUSTOMS ACT , 1962 (for short 'the Act') alleging import of gold, the market price of which exceeds Rupees One Crore. ... The question as to whether the offences under the Act are bailable or not is specified under section 104(6) of the Act. Since section 104(1), (6) and (7) of the Act are relevant, they are extracted as below: “104. ... worth more than Rupees One #HL_....
One Crore shall be non-bailable and as per Section 104(7) Customs Act all the other offences are bailable except provided in sub-section (6) of Section 104 Customs Act. 27. ... It is further submitted that as the value of the gold bars allegedly seized from the possession of the applicant is below Rs. 1 Crore, thus the same is not covered under an clause of sub Section 6 of Section 104 of the Customs Act#....
One Crore shall be non-bailable and as per Section 104(7) Customs Act all the other offences are bailable except provided in sub-section (6) of Section 104 Customs Act. 27. ... of this Act or the Foreign Trade (Development and Regulation) Act, 1992(22 of 1992), and such instrument is utilised under this Act, where duly relatable to such utilisation of instrument exceeds fifty lakh rupees, shall ....
shall be non-bailable,— (c) where the market price of the goods involved exceeds one crore rupees” , leaves no manner of doubt that where the value of the goods involved exceeds ₹1 crore, the offence under Section 135 is rendered non-bailable ... Unit Case No. 9/2025-26 registered under Section 135 (1)(b) of Customs Act, 1962 (for brevity, ‘the Act’) 3. ... Power to arrest. (1) If an officer of cus....
It is further stated that the gold is liable to be confiscated as the market price of the gold, corresponding to the foreign currency, is more than Rs.1 crore, which makes the offence non-bailable under Section 104 of the Act. 7. ... As per the investigation conducted so far, it has come on record that on more than 04 occasions, the accused persons in conspiracy with each other has brought the gold in an illegal manner and the market value of the same is more than Rs.1#HL_END....
(C) of of Customs Act, 1962. ... currency was recovered. ... Department under Section 108 of the Act, evasion above Rs.50,00,000/- is a non bailable offence even if the bag which is ... VIII(48)AP/02/2018 was registered by Inspector, Customs Airport, Jaipur for offence under Sections 135(1)(A)(B) p style="position
A show cause notice dated 05.10.2018 had been issued to detenu under Section 124 of Customs Act, 1962 proposing confiscation of foreign currency valued at INR 10,94,05,047.50/- under Section 113(d), (e) and (h) of Customs Act, 1962 read with provisions of Foreign Exchange Management Act 1999 and Regulations 5 and 7 of Foreign Exchange Management (Export and Import of Currency) Regulations Act, 2015 and penalty to be imposed under Section 114 of Customs Act. Complaint to prosecute the detenu under Section 135 of Customs Act had been filed by Assistant Commissioner of Customs....
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