Principal Commissioner of Customs Vs Vikram Jain (Madras High Court)
Summary: The Madras High Court allowed the writ appeal filed by the Principal Commissioner of Customs and set aside the Learned Single Judge’s order directing return of ₹21,55,000 seized from the premises of Shri Vikram Jain. The principal issue was whether Indian currency seized during an investigation into fraudulent claims under the DGFT Amnesty Scheme was governed by Section 110(1) read with Section 110(2) of the Customs Act, 1962, or whether it constituted a “thing” capable of seizure under Section 110(3). The Court held that Section 110(3) applied in the facts of the case.
The matter arose from an incident report received by the Special Intelligence and Investigation Branch (SIIB), Chennai Preventive Commissionerate, concerning alleged misuse of the DGFT Amnesty Scheme for one-time settlement of default in export obligation under Advance Licence and EPCG authorizations. Investigation allegedly revealed fraudulent closure letters obtained from the DGFT by fraudulent means and bribing officials. Searches also revealed forged entries in the EODC section register.
One D. Manikandan, representative of a suspected importer company, allegedly disclosed payment of ₹50 lakhs as bribe to Shri Sandeep Kumar Chaurasia, an Appraiser in the Customs Department, for forging letters showing payment of approximately ₹1.66 crores for closure of cases under the Amnesty Scheme. Further investigation led Customs authorities to the premises of M/s. Globe Opticals, where Shri Vikram Jain was the proprietor. According to the Department, his father Shri Mittalal and Shri Ramlal were controlling the shop and acting as Hawala agents. Cash of ₹21,55,000/- and a mobile phone were seized on the reasonable belief that the cash represented unaccounted transactions connected with illegal gratification and Hawala transactions.
