Gujarat High Court Rebukes Customs Over 'Suspicious' Disposal of Seized Gold
The Gujarat High Court has delivered a stern rebuke to the Customs Department, labeling its disposal of 200 grams of seized gold bars as "suspicious and dubious". The court has issued a warning that it may initiate criminal or disciplinary proceedings against the erring officers involved in this controversial case.
Case Background and Petitioner's Claims
The case centers on two gold bars of 999 purity 24-karat gold, weighing 100 grams each, which were seized from a passenger arriving in Ahmedabad from Abu Dhabi in October 2021. At the time of seizure, the gold was valued at approximately Rs 9.75 lakh. The petitioner has challenged the November 2022 disposal of these gold bars by Customs authorities, arguing that he should be compensated with either the current market value of the gold or equivalent gold of the same purity. Currently, the market price for 10 grams of 24-karat gold stands at around Rs 1.5 lakh.
Court's Scrutiny and Revelations
A Division Bench comprising Justice A S Supehia and Justice Pranav Trivedi heard the petition and identified three serious illegalities in the Customs Department's handling of the case:
- The Customs Department issued a notice ordering confiscation of the gold on November 30, 2022, one day after the gold had already been disposed of by sending it to the Mint on November 29, 2022.
- The department failed to inform the appellate authority about the disposal of the gold on November 29, 2022. Consequently, when the appellate authority set aside the confiscation order on January 10, 2024, it operated under the mistaken belief that the gold was still in Customs custody.
- The Customs Department incorrectly applied the Disposal Manual, 2019. Since the seized gold was classified as 'Primary Gold' in the form of two 100-gram bullion bars, it should have been routed through Public Sector Banks for sale as per the manual, rather than being sent directly to the Mint.
Contradictory Statements and Court's Displeasure
The High Court expressed strong dissatisfaction with the "contrary statements" made by the Customs Department in its affidavits. Initially, the department asserted that no notice was required for confiscated goods under relevant provisions. However, in a subsequent affidavit, it claimed that the petitioner had been informed about the disposal on January 18, 2022—a claim the court found unsupported by evidence, as no such intimation was received by the petitioner.
Furthermore, the court raised concerns about whether the Customs Department tracked the gold once it was sent to the Mint for disposal, highlighting the opaque nature of the process.
Financial Compensation and Legal Warnings
In response to the court's directives, the Customs Department has deposited Rs 9.22 lakh with the Registry, submitted by the Assistant Commissioner of Customs, Paldi Division, Ahmedabad. The court has ordered this amount to be disbursed to the petitioner, while clarifying that the final determination of the gold's actual value will be made later, considering all circumstances.
The court's order explicitly warned that this case is "fit for initiation of either criminal proceedings or disciplinary proceedings" against the involved officers. However, the bench has decided to give the officers one final opportunity to justify their actions before such directions are issued. The matter is scheduled for further hearing on February 11.
Broader Implications
This ruling underscores the judiciary's vigilance over governmental agencies and their adherence to legal protocols. The Gujarat High Court's firm stance serves as a reminder that procedural lapses and contradictory affidavits will not be tolerated, especially in matters involving valuable seized assets. The case also highlights the importance of transparency and accountability in the disposal of confiscated goods, ensuring that citizens' rights are protected against arbitrary actions by authorities.
