Delhi High Court Extends Redemption Deadline for Confiscated Rolex Watch

Court Rules Single Rolex Watch is for Personal Use, Not Commercial Quantity

In a significant judgment, the Delhi High Court has extended the deadline for the redemption of a confiscated Rolex watch belonging to Mahesh Malkani, a Dubai resident, until October 31, 2025. The Court ruled that the watch, detained at Indira Gandhi International Airport for non-declaration, cannot be deemed a commercial quantity and can be kept for personal use.

The case, Mahesh Malkani v. Commissioner of Customs, revolved around the detention of a Rolex watch valued at Rs. 13,48,500 when Mr. Malkani arrived in India on March 7, 2024. The Commissioner of Customs had earlier denied Mr. Malkani any free allowance for failing to declare the watch at the airport, ordering its confiscation under Sections 111(d), 111(j), 111(l), and 111(m) of the Customs Act, 1962. However, the adjudicating authority had permitted redemption of the watch for re-export upon payment of a fine of Rs. 1,80,000, to be executed within 120 days from the order dated January 30, 2025.

The High Court, presided by Justices Prathiba M. Singh and Shail Jain, noted errors in the reasoning of the impugned order regarding the classification of the watch as a commercial quantity. The Court highlighted that the adjudicating authority must avoid such errors in future orders.

In its judgment, the Court clarified that the single Rolex watch could not be classified as a commercial quantity and should be allowed for personal use. Acknowledging the redemption option provided to Mr. Malkani, the Court extended the deadline for the redemption fine payment to October 31, 2025, enabling Mr. Malkani to reclaim his watch.

Furthermore, the Court ruled that Mr. Malkani must pay warehousing charges applicable from the date of detention, in addition to the redemption fine and penalty of Rs. 1,50,000 levied under Section 112 of the Customs Act, 1962.

The judgment serves as a cautionary tale for adjudicating authorities to ensure accuracy in their orders and underscores the importance of distinguishing between personal and commercial quantities in customs cases.

Bottom Line:

Customs Act, 1962 - Confiscation and redemption of detained goods - A single Rolex watch cannot be considered as commercial quantity and may be kept for personal use - Redemption fine payment deadline extended. 

Statutory provision(s): Customs Act, 1962 Sections 111(d), 111(j), 111(l), 111(m), 125, 112

Mahesh Malkani v. Commissioner of Customs, (Delhi)(DB) : Law Finder Doc Id # 2782676