Seizure of 15,000 USD for Lack of RBI Proof: Delhi HC Allows Delay in Filing Appeal with Rs. 10,000 Fine [Read Order]

The High Court of Delhi, allows delay in filing an appeal with a Rs. 10,000 fine for 15,000 USD seized by Customs due to lack of Reserve Bank of India (RBI ) proof.

Rinku Dubey,petitioner-assessee,approached the High Court under Article 226 of the Constitution of India, seeking release of 15,000 U.S. Dollars seized by the Customs Department. On 31st October 2023, while intending to fly to Bangkok via Mumbai on Flight No. AI 624, he carried the currency concealed in a black trolley bag. As he failed to provide proof of legal possession under Reserve Bank of India rules, the currency was seized.

Thereafter, his statement was recorded, and the Customs authorities issued an Order-in-Original on 24th December 2024, directing absolute confiscation of the 15,000 U.S. Dollars (equivalent to INR 12,36,750) and imposing a penalty of Rs. 1,30,000 under the Customs Act and the Foreign Exchange Management Act, 1999.

The petitioner counsel stated that the petitioner could not file an appeal on time due to financial difficulties and lack of knowledge about the procedure. He requested permission to file the appeal even after the limitation period had expired.

The respondent’s counsel, stated that under Section 128(1) of the Customs Act, 1962, an appeal could be filed within 60 days, with an additional 60 days allowed under the proviso.

Justice Prathiba M Singh and Justice Shail Jain considered its earlier ruling in M/s Durga Apparels Pvt. Ltd. v. Commissioner of Customs, where it had held that delays in filing appeals under Section 129A of the Customs Act, 1962 could be condoned if sufficient cause was shown.

In that case, factors such as ongoing investigations, the COVID-19 pandemic, and the medical condition of the company’s director were treated as sufficient cause, and the delay was allowed subject to conditions like payment of costs and avoidance of unnecessary adjournments.

In the present case, given the substantial foreign currency seized from the petitioner, the court allowed the petitioner to file an appeal against the Order-in-Original dated 24th December 2024 by 30th November 2025.

The appeal was directed to be heard on merits, ignoring limitation, and the petitioner was ordered to deposit Rs.10,000 as costs with the Customs Department within two weeks. The petition and any pending applications were disposed of accordingly.

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