Kerala High Court Orders Customs to Decide on Dulquer Salmaan's Seized Car Release Within a Week
The seizure occurred as part of Operation Numkhor, named after the Bhutanese word for "vehicle," which targeted luxury cars allegedly imported illegally from Bhutan.
Dulquer-salman-Taxscan
Dulquer-salman-Taxscan
The Kerala High Court on Tuesday directed the Customs Department to consider Malayalam actor Dulquer Salmaan's application for the provisional release of his luxury car within one week, while intensely questioning the authorities over their seizure of the vehicle without providing adequate reasons.
Justice Ziyad Rahman A.A. heard Salmaan's petition challenging the seizure of his 2004 Land Rover Defender, which was confiscated during Operation Numkhor—a massive crackdown on luxury vehicles allegedly smuggled into India from Bhutan using forged documents.
During the hearing, Justice Rahman grilled the Customs officials about their justification for the seizure, repeatedly asking what evidence they possessed to support their "reasonable belief" that the vehicle was illegally imported. The judge pointedly questioned the authorities, stating: "So you can say 'reasonable belief' and seize anything? What is the purpose of mahzar then? Shouldn't they be given at least some reason?"
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The Court noted that Customs had not provided specific information even in sealed cover, with Justice Rahman remarking: "Even in sealed cover, you (Customs Department) have not provided any specific information". When the Customs counsel assured them they were in the process of verification, the judge responded: "That means as of now, you don't have any grounds".
The Court emphasized that provisional release is a fundamental right of the petitioner under Section 110A of the Customs Act. Justice Rahman clarified: "Provisional release is a right of the petitioner under normal circumstances. In case his application is rejected, the same can only be done through a speaking order with reference to the documents produced and the contentions raised".
The interim order stated that if Dulqer submits an application under Section 110A, the Additional Commissioner of Customs, Kochi, must consider it and pass appropriate orders within one week of submission, providing the petitioner or his legal representative an opportunity to be heard.
The seizure occurred as part of Operation Numkhor, named after the Bhutanese word for "vehicle," which targeted luxury cars allegedly imported illegally from Bhutan. The operation resulted in raids at approximately 30 locations across Kerala, including the residences of prominent Malayalam actors Dulquer Salmaan, Prithviraj Sukumaran, and Amit Chakkalakkal.
Customs officials seized 36 high-end vehicles during the raids, with investigations revealing that smugglers had been importing decommissioned vehicles from the Royal Bhutan Army at auction prices and selling them in India at inflated rates. The racket allegedly involved forging documents bearing seals of the Indian Army, US Embassy, and other official entities to legitimize the illegal imports.
Salmaan argued in his petition that he purchased the Land Rover Defender legally through proper channels, believing the transferor had valid ownership and registration. The actor stated he acquired the vehicle from Aarpee Promoters Pvt. Ltd., which had earlier obtained it from Habeed Mohammed, with the entire payment made through bank transfer.
The petition noted that the 2004 Land Rover Defender was originally shipped by the International Committee of the Red Cross (ICRC) to its New Delhi Regional Delegation and cleared through proper bill of entry for home consumption. Salmaan contended that "there is no mechanism available for an individual buyer to verify the ownership trail of a vehicle dating back to 2004".
Operation Numkhor has uncovered what officials describe as a sophisticated smuggling network involving multiple violations. Customs Preventive Commissioner T. Tiju revealed that investigators identified approximately 200 Bhutanese-registered vehicles operating in Kerala, with the racket potentially costing the exchequer crores in lost revenue.
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The investigation has expanded beyond vehicle smuggling to include probes into gold and narcotics trafficking, income tax evasion, GST fraud, and potential money laundering. Authorities are also examining whether funds from these illegal activities were used for terrorist financing, which could trigger involvement by the National Investigation Agency.
While Customs released 33 out of 39 seized vehicles to their owners for safe custody, six vehicles remain in custody pending further investigation, including Salmaan's Land Rover Defender and Nissan Patrol, along with actor Amit Chakkalakkal's Toyota Land Cruiser. The released vehicles cannot be used and must be kept securely for inspection when required.
The Court's direction aligns with established legal precedents regarding Section 110A of the Customs Act. According to official guidelines, seized imported goods should be released provisionally by the competent authority upon request from the owner, subject to executing a bond with appropriate security and conditions.
The Court noted that while authorities are free to carry out investigations, depriving a person of lawfully purchased property cannot be justified without material evidence. Justice Rahman observed that the fact that the vehicle had been operated based on registration provided by various authorities for the past 20 years must be considered during the provisional release assessment.
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