Searching Case Laws & Precedent on Legal Query!
Scanned Judgements…!
Searching Case Laws & Precedent on Legal Query!
Scanned Judgements…!
Travelers, businesspersons, and individuals often face anxiety when customs officials seize foreign currency at airports. A common question arises: Foreign currency less than 50 lakhs in composite seizure bailable? This query touches on critical aspects of India's Customs Act, 1962, particularly offenses involving smuggling or undeclared currency. While no specific DRI manual explicitly addresses composite seizures (joint seizures of multiple items like currency and goods), court rulings provide clarity on bail eligibility based on value thresholds. This post breaks down the legal landscape, drawing from High Court judgments and statutory provisions. Note: This is general information, not legal advice. Consult a lawyer for your specific situation.
Composite seizure typically refers to scenarios where authorities seize multiple items together, such as foreign currency alongside gold or other goods, often at airports like Cochin or Mumbai. Under the Customs Act, smuggling foreign currency or gold by concealing it in baggage to evade duties falls under Sections 132 and 135(1)(a), (b), (c). The pivotal factor is the market value or duty liability.
Key finding: Offenses where the value is below Rs. 50 lakhs are generally non-cognizable and bailable. Courts have consistently granted bail under Section 104(3) in such cases. For instance, the value of the gold seized from each accused was less than Rs.1 crore and the custom duty payable was less than Rs.50 lakhs and therefore, the offence was bailable. Azaz Khan VS N. I. A. Through Special P. P. - 2022 Supreme(Raj) 1686 Similarly, the value of the gold of the each passengers being less than Rs.1 crore and the duty amount qua the same being less than Rs.50 lakhs. T. NANDHINI Vs SENIOR INTELLIGENCE OFFICER
This threshold distinguishes routine smuggling from higher-stakes cases. Arrests often follow voluntary statements, but bail is routine if conditions are met, with petitioners sometimes challenging onerous terms via writ petitions. Joseph Santhosh Kottarathil Alexander VS The Superintendent of Customs (AIU) - 2019 0 Supreme(Ker) 260Joseph Santhosh Kottarathil Alexander VS Superintendent of Customs (AIU) - Crimes (2019)
The Customs Act outlines clear classifications:
| Provision | Applicability | Bailable Status | Threshold ||-----------|---------------|-----------------|-----------|| Section 104(3) | Currency/gold smuggling | Bailable | < Rs. 50 lakhs duty Joseph Santhosh Kottarathil Alexander VS The Superintendent of Customs (AIU) - 2019 0 Supreme(Ker) 260Joseph Santhosh Kottarathil Alexander VS Superintendent of Customs (AIU) - Crimes (2019) || Section 104(6)(b) | Prohibited goods (e.g., monkeys) | Non-bailable | Independent of value Imran Latif Shirgawkar VS Directorate of Revenue Intelligence, Mumbai - 2019 0 Supreme(Bom) 1469Imran Latif Shirgawkar VS Directorate of Revenue Intelligence, Mumbai - 2019 0 Supreme(Bom) 1479 || Section 135(1)(a)-(c) | Undeclared foreign currency | Bailable below threshold | Market value <50 lakhs Azaz Khan VS N. I. A. Through Special P. P. - 2022 Supreme(Raj) 1686 |
No direct FEMA (Foreign Exchange Management Act) references apply here; cases focus on Customs Act. FEMA handles foreign exchange violations separately, but dual adjudication is barred: The same set of alleged offences cannot be adjudicated twice over by two authorities. Sh. Jagdeep Singh VS Office of The Commissioner of Customs (Delhi Airport) - 2023 Supreme(Del) 2722
The Directorate of Revenue Intelligence (DRI) enforces these laws, often as respondents opposing bail. However, no explicit DRI manual on composite seizures or thresholds appears in reviewed judgments. DRI emphasizes non-bailable status for prohibited items but loses on bail for low-value currency cases. Imran Latif Shirgawkar VS Directorate of Revenue Intelligence, Mumbai - 2019 0 Supreme(Bom) 1469Imran Latif Shirgawkar VS Directorate of Revenue Intelligence, Mumbai - 2019 0 Supreme(Bom) 1479
Arrest and Bail Process:- Voluntary statements lead to arrest.- Bail under Section 104(3) with conditions (e.g., reporting, no travel).- Compounding available for Section 135 offenses; courts direct expedited adjudication. Imran Latif Shirgawkar VS Directorate of Revenue Intelligence, Mumbai - 2019 0 Supreme(Bom) 1469Imran Latif Shirgawkar VS Directorate of Revenue Intelligence, Mumbai - 2019 0 Supreme(Bom) 1479
Judicial intervention via writs succeeds against excessive conditions, protecting fundamental rights. Joseph Santhosh Kottarathil Alexander VS The Superintendent of Customs (AIU) - 2019 0 Supreme(Ker) 260Joseph Santhosh Kottarathil Alexander VS Superintendent of Customs (AIU) - Crimes (2019)
Several High Court rulings reinforce the bailable nature for low-value seizures:
Habitual offenders face stricter scrutiny, as in a case with multiple seizures (Rs. 22 lakhs currency, mobiles Rs. 18.53 lakhs), where appeals failed absent perversity. Jayendra Chandulal Thakkar VS State of Maharashtra - 2023 Supreme(Bom) 496
Fake or excess Indian currency may invoke separate notifications, but foreign currency smuggling typically stays bailable below thresholds. No Indian currency specifics in core cases, though seizures noted alongside foreign notes. Imran Latif Shirgawkar VS Directorate of Revenue Intelligence, Mumbai - 2019 0 Supreme(Bom) 1469
Travelers should declare currency per RBI limits (USD 25,000 cash outbound) to avoid issues.
If facing seizure, seek immediate legal help. Precedents show favorable outcomes for low-value cases. Stay informed, declare properly, and comply to mitigate risks.
Disclaimer: Laws evolve; this overview relies on cited judgments. Professional advice essential.
#CustomsLaw #ForeignCurrencySeizure #BailIndia
Therefore, as per the provisions laid down under Customs Act the offence itself is bailable, but the DRI authorities with a view to give different colour to this case, has issued only one composite seizure list against the recovery of 13 Biscuits/Bullions from possession of the three different persons ... It is further submitted that value of the seized seven (07) pieces of Gold Biscuits/Bullions recovered from possession of the petitioner comes to Rs. 41,09,546/- only (serial no. 5 to 11 of the seizure list) which is ob....
Consequently, the material on record ought to justify that the Customs Officer had reason to believe that the offences were non-bailable under clauses (a) and (c) of sub-Section (6) of Section 104 for evasion of duty exceeding Rs. 50 Lakhs or the market price of the goods exceeds Rs. 1 Crore, respectively ... Lakhs Rupees and under Clause (C), the offence is in relation to the specified category of prohibited goods. ... Secondly, from the documents annexed to the remand report including the seizure-memo....
Therefore, the value of the gold of the each passengers being less than Rs.1 crore and the duty amount qua the same being less than Rs.50 lakhs. ... In fact, they also possessed foreign currency which was duly seized by the respondent. However, it was not shown in the seizure mahazar. ... 4.2 He would further submit that the duty shall be paid in convertible foreign currency. ... The market value of the gold of 1 ....
He claims that no foreign currency was seized from him and he has no connection with the same. He also denied that he had any connection with the seizure of drugs from the premises (no. A-127, 2nd Floor, Sharda Puri, Ramesh Nagar, Delhi-110015). ... The foreign currency recovered from his possession, equivalent to Rs.1,28,81,650/(Rupees One crore Twenty Eight Lakhs Eighty One Thousand Six Hundred and Fifty only) should not be confiscated under Section 113 (d) of the Customs Act, 1962 f....
In this case the petitioner was alleged to be attempted to illegally export foreign currency and Indian currency worth about Rs.48 lakhs. 13. Zahar Ahmed S. Ali Maraisi Vs. Air Customs Officer, (Crl.M. ... He got clearance from Immigration and Customs but did not declare that he was carrying foreign currency. However, on suspicion, he was intercepted by Customs Officers and on search of his person and personal baggage, US $ 10,350 and Iranian Currency 5,05,000 Ria....
It was urged that as against the foreign currency worth of Rs. 8 lakhs, penalty of Rs. 80 lacs has been imposed. We find that value of foreign currency was not Rs. 80 lakh at the relevant time. It was even admitted by both the counsels, if it is taken at the rate prevalent on the date of seizure. ... The appellant Manoj Kumar in his statement admitted that seized foreign currency was purchased by them 6 to 7 days prior to the seizure#HL_EN....
It was urged that as against the foreign currency worth of Rs. 8 lakhs, penalty of Rs. 80 lacs has been imposed. We find that value of foreign currency was not Rs. 80 lakh at the relevant time. It was even admitted by both the counsels, if it is taken at the rate prevalent on the date of seizure. ... The appellant Manoj Kumar in his statement admitted that seized foreign currency was purchased by them 6 to 7 days prior to the seizure#HL_EN....
of the complaint, copy of which has been produced on record as Annexure-5, clearly discloses that the complaint in its para 4.1 refers to the amount of Rs.96.5 lakhs approximately, and the foreign currency notes were found in his possession on 12.11.2017 but also refers to the amount of foreign currency ... If the market value of the goods exceeds one crore of rupees or the duty evaded or attempted to be evaded exceeds fifty lakhs rupees, it is non-bailable otherwise ....
and foreign currency at Mumbai Airport, equivalent to Rs. 22 Lakhs and the other in Bangalore, where 85 mobile phones valued at Rs. 18,53,000/- were seized on his arrival from Switzerland on 04 September, 2003. ... He also stated that he had received foreign currency from Nepal and on being asked whether he declared the said currency on his departure from Nepal or on his arrival in New Delhi, he stated that he had not declared the foreign currency, o....
or foreign currency into Indian currency; (b) "foreign currency" and ''Indian currency" have the meanings respectively assigned to them in clause (m) and clause (q) of section 2 of the Foreign Exchange Management Act, 1999 (42 of 1999).] ... —For the purposes of this section - (a) "rate of exchange" means the rate of exchange - (i) determined by the Board, or (ii) ascertained in such manner as the Board may direct, for the conversion of Indian currency#HL_EN....
The value of the gold seized from each accused was less than Rs.1 crore and the custom duty payable was less than Rs.50 lakhs and therefore, the offence was bailable. Thus, all the accused appellants were released on bail under the Customs Act.
In case of injury more than 50% Rs. 5 Lakhs Rs.7 Lakhs c. In case of injury less than 50% Rs. 3 Lakhs Rs.5 Lakhs
Arbitration (for works costing less than Rs 50 lakhs). Within 30 days of receipt of notice from the contractor or his intention to refer the dispute to arbitration the Chief Engineer (SP, Irrigation Department), Pune shall send to the contractor a list of three officers of the rank of Superintending Engineers or higher, who have not been connected with the work under this contract. -All the disputes or differences in respect of which the decision has not been final and conclusive as per Clause 54 above shall be referred for arbitration to a sole arbitrator appointed as foll....
2.The facts, in nutshell, would reveal that search and seizure operation was conducted in the shop and residential premises of the petitioner on 18-9-1990. Foreign currency equivalent to Indian currency worth Rs. 44,447.50 alongwith Indian currency in the sum of Rs. 4,13,600/- was recovered and seized in the said search and seizure operation.
3. The second incident relates to the seizure of foreign currency worth Rs. 18.6 lakhs at the Trivandrum Airport on 27-1-1993 from one Muhammed Nazeer. The only link with the seizure is a jeep of which the petitioner is the registered owner. According to the petitioner, there is absolutely no nexus between him and the seizure.
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