Illegal Retention of Seized Cash Beyond Statutory Period Leads to Judicial Rebuke and Exemplary Costs
In a significant judgment, the Allahabad High Court has ruled against the customs authorities for illegally retaining cash seized from Shalabh Agarwal and another petitioner. The court directed the immediate return of Rs. 25,20,000 to the petitioners, emphasizing the statutory violation under the Customs Act, 1962. The division bench comprising Justices Saumitra Dayal Singh and Indrajeet Shukla found that the customs authorities failed to issue a show cause notice or obtain a valid extension for retaining the seized cash beyond the prescribed six months.
The court highlighted that the customs department's attempt to extend the retention period was invalid as it lacked proper approval and was not communicated to the petitioners. The judgment criticized the authorities for transferring the seized cash to the income tax department during the pendency of the writ petition, terming it an action to defeat the judicial process.
The court imposed exemplary costs, initially set at Rs. 10 lakhs, reduced to Rs. 1 lakh upon assurances from the authorities to adhere to statutory provisions in future cases. The judgment underscores the need for authorities to act within their jurisdiction and respect judicial proceedings.
Bottom line:-
The retention of seized cash beyond the statutory period prescribed under Section 110(2) of the Customs Act, 1962, without issuing a show cause notice or properly communicating an extension order, is illegal and amounts to a violation of the petitioner's rights.
Statutory provision(s): Customs Act, 1962 Section 110(2), Customs Act, 1962 Section 124
Shalabh Agarwal v. Additional Director General, (Allahabad)(DB) : Law Finder Doc id # 2921944
