OFFICE OF THE COMMISSIONER OF CUSTOMS (AIRPORT & GENERAL)

सीमाशुल्कआयुक्तकाकार्यालय (हवाईअड्डावसामान्य(
TERMINAL-3, INDIRA GANDHI INTERNATIONAL AIRPORT, NEW DELHI-110037
टर्मिनल-3,इंदिरागाँधीअन्तर्राष्ट्रीयहवाईअड्डा,नईदिल्ली110037
C. No. VIII (AP)10/P&I/ 4229-A/Arrival/2023 Date: .12.2023

DRAFT SHOW CAUSE NOTICE

One passenger, namely Sh. Mantu Kumar (DOB: 01.01.2002) (Hereinafter referred to as Pax) S/o
Sh. Dahari Paswan, R/o Vill-Khorouli, Post-Sahatwar, Ballia, Uttar Pradesh-277211, holder of Indian
Passport No. V3630121 issued on 17.11.2021 having expiry date 16.11.2031, coming from Sharjah to New
Delhi by Flight no. G9463 (Air Arabia) dated 19.06.2023, Seat No. 2D, arrived at Terminal-3, Indira Gandhi
International Airport, New Delhi, on 20.06.2023

2. On the basis of suspicion and profiling, Sh. Mantu Kumar was followed by the Customs Officers
from Flight gate 10B and was intercepted by the Customs Officers after the Pax crossed the Green Channel
near the exit gate of the Customs Arrival Hall. The Pax was carrying one Grey colour Trolley bag as
checked in baggage (21 Kgs.) having Tag No. G9 265441 and One black colour Back pack. The Pax was
asked whether he was carrying any gold/contraband/incriminating items to which he replied in negative.
For confirming the truthfulness of oral declaration of the Pax, he was diverted for scanning of his baggage
through the X-ray machine. On scanning of his baggage, nothing objectionable/suspicious image were
noticed. The Pax was then asked to pass through Door Frame Metal Detector (DFMD) installed near X-Ray
Machine in the arrival hall after taking out all the metallic items. When Sh. Mantu Kumar passed through
the DFMD, no beep sound was heard.

3. Sh. Mantu Kumar was again asked whether he was carrying any contraband goods or goods in
commercial quantity, to which the Pax answered in negative. For conformity and truthfulness of oral
declaration of the Pax, he was taken into Customs Preventive Room located at the International Arrival
Hall for physical examination of his baggage and for his personal search. The pax was asked whether he
knew Hindi or English language and Pax submitted that he can read, write and understand Hindi
Language and he also submitted that he knows little English and understand the said Language. At this
point of time, two independent panchas were called for the witness proceedings.

4. Thereafter, in presence of Panchas, the Pax was served upon with notice under Section 102 of the
Customs Act, 1962 (RUD-1), informing him that his personal & baggage search was required and if he
wished, his baggage and personal search could be conducted before the Magistrate or before the Gazetted
Officer of Customs to which, the Pax submitted his consent on the body of his Notice that he had no
objection if his personal and baggage search is taken before Gazetted officer of Customs.

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5. Upon personal & baggage search of the Sh. Mantu Kumar (D.O.B.–01-01-2002), following items
were recovered:

1. 02 greyish silver coloured rectangular shaped Plastic pouches suspected to contain gold in chemical paste
form, total weighing to 1805 Grams (Approx.) including packing material, found kept in the two respective
front pockets of black colour Jeans worn by the Pax.
2. Boarding Pass of Flight No. G9463 dated 19.06.2023 from Sharjah to New Delhi;
3. Indian Passport No. V3630121 issued on 17.11.2021 having expiry date 16.11.2031;
4. 45 UAE Dirham and INR 1600/-;
5. One Mobile Smartphone of Tecno brand having SIM No. 8546067546 (Airtel);
6. One Grey colour Trolley bag as checked in baggage (21 Kgs.) having Tag No. G9 265441 and One black colour
Back pack containing old and used personal effects.

The items mentioned at Sr. Nos. 1 [2 plastic pouches containing suspected gold paste), 2 and 5
(Mobile phone resumed for further investigation), as above have been detained for further investigation
and remaining items have been returned to the Pax on spot. However, the copy of the passport was taken
for record/further investigation purpose.

6. Thereafter on being asked by Customs officers, Sh. Mantu Kumar denied possession of licit
documents for possession of the said recovered two greyish silver coloured rectangular shaped plastic
pouches suspected to contain gold in chemical paste form, total weighing to 1805 gram including packing
material found kept in the two respective front pockets of black colour Jeans worn by the Pax. Sh. Mantu
Kumar informed infront of the panchas, informed that he is aware of the Customs procedure for
passenger clearance at International Airport in India and also that there is Customs Duty on import of
Gold. He admitted his mistake of acts of omission & commission on his part by not declaring the said
recovered goods to the Customs Officer at Red Channel for payment of Customs duty on gold.

7. Further, the recovered 02 greyish silver coloured rectangular shaped plastic pouches, suspected to
contain gold in chemical paste form, total weighing to 1805 gram including packing material which were
found kept in the two respective front pockets of black colour Jeans worn by the Pax, were kept in a
transparent plastic container then wrapped with customs tape & sealed with Customs plier seal bearing
Customs “PA” IGI on one side &“Ashoka Stambh” on the other side along with a paper seal bearing the
signatures of the Panchas, the Pax and the Customs Officers. The proceedings were recorded under
Panchnama-1 dated 20.06.2023.

8. On 20.06.2023, in presence of the Panchas, the extraction proceedings of the aforementioned

suspected Gold paste were carried out at the premises M/s Sovereign Metals Limited, State Main Office
121 FF, Gold Tower, Gali No. 38, Gurudwara Road, Karol Bagh New Delhi-110005. In presence of the
panchas and Mr. Mantu Kumar, one transparent plastic container in sealed condition with Seal bearing
“Customs PA IGI” on one side and ‘Ashoka Stambh’ on another side over a paper slip bearing the dated
signatures of Mr. Mantu Kumar and two independent witnesses and the Customs Officers, was produced.
The seal of the transparent plastic container was cut open and said 02 greyish silver coloured rectangular
shaped Plastic pouches suspected to contain gold in chemical paste form, weighing approx. 1805 grams
(including packing material), were taken out. Thereafter, the process of extraction of gold from said items
was started. After completion of the extraction process the quantity of yellow metal extracted is detailed
as under:

S. Name of Description of metal recovered after extraction Total Weight of metal

No Pax/Person recovered after
extraction
Mr. Mantu Kumar One uneven shaped yellow metal bar appearing to be gold
1 (Dob 01.01.2002); extracted from 02 greyish silver coloured rectangular shaped

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 Plastic pouches suspected to contain gold in chemical paste 1536.59 grams
form, weighing approx. 1805 grams (including packing
material)

Then, in presence of panchas, the extracted one (01) uneven shaped yellow metal bar appearing to be
Gold, weighing approximately to 1536.59 grams and the packing material used to pack the said chemical
paste (2 greyish silver plastic pouches) weighing 22.51 grams approx., were both placed inside one
transparent plastic container and further wrapped with transparent adhesive Customs tape and plier
sealed with “Customs PAIGI” on one side and “Ashok Stambh” on another side, over a paper slip bearing
the dated signatures of the Panchas, Mr. Mantu Kumar (Dob 01.01.2002) and the Customs Officers. The
said proceedings were recorded under Panchnama-2 dated 20.06.2023.

9. Subsequently, at Customs Shift Preventive Office, Arrival Hall, Terminal-3, IGI Airport, New Delhi,
in front of the Panchas, one plastic container containing one (01) uneven shaped yellow metal appearing
to be gold weighing 1536.59 grams and packing material weighing 22.51 grams, wrapped with Customs
Tape and duly sealed with Customs Plier Seal bearing “Customs PA IGI” on one side and ‘Ashoka Stambh’
on another side along with a paper seal bearing the signatures of the panchas, the pax and the Customs
officer after extraction, was cut open and one uneven shaped yellow metal bar weighing 1536.59 grams
recovered from Mr. Mantu Kumar along with packing material weighing 22.51 grams were taken out from
the said plastic container.

10. Thereafter one uneven shaped yellow metal bar weighing 1536.59 grams recovered from Mr.
Mantu Kumar was produced before Jewellery appraiser who joined the proceedings and the same was
appraised by him and the said yellow metal bar was found to be gold. An Appraisement Report dated
20.06.2023 (RUD-2) was submitted by the Appraiser, as per which, the weight, purity and value of the
said gold is detailed below:

Sr. Descriptio Purit Weight Tariff Value Market Name of Passport

No. n of Gold y (in (INR) Value (Rs.) the No.
grams) Passenger

1 01 (One) 995 1536.59 80,39,669/- 90,84,320/- Sh. Mantu V3630121

uneven Kumar
shaped bar (DOB:
of gold 01.01.2002)
Total 995 1536.59 80,39,669/- 90,84,320/-

Rate of Gold as per Notification No. 45/2023 – Customs (N.T.) dated 15.06.2023 is USD 630 per
10 Grams.
Exchange Rate of USD as per Notification No. 44/2023 – Customs (N.T.) dated 15.06.2023 is Rs.
83.05.
Total Tariff Value of the above said recovered Gold from above mentioned two passenger comes to
Rs. 80,39,669/- (Rupees Eighty Lakhs Thirty Nine Thousand Six Hundred Sixty Nine only).

The Market Value of the above said recovered gold, as per rate mentioned on the website of The
Economic Times dated 20.06.2023, i.e., Rs. 59,120/- per 10 grams, comes to Rs. 90,84,320/- (Rupees Ninety
Lakhs Eighty Four Thousand Three Hundred Twenty only).

11. As the pax illegally imported the said recovered Gold weighing 1536.59 gms in the
aforementioned Gold paste form (weighing 1805 grams including packing material) and did not declare
the same to the proper officer of Customs with deliberate intention to clear the impugned Gold

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clandestinely. Hence, the said recovered Gold (weighing 1536.59 grams) was seized under Section 110 of
the Customs Act, 1962 vide Seizure Memo dated 20.06.2023 on the reasonable belief that the same was
imported into India illegally with the intention to smuggle the same into India and clear the same without
paying Customs duty, hence was liable for confiscation under Section 111 of the Customs Act, 1962.

12. The said gold extracted gold item, approximately weighing 1536.59 grams, was put into a
transparent plastic container and further wrapped with customs tape and sealed with Customs Plier Seal
bearing “Customs PA IGI” on one side and ‘Ashoka Stambh’ on another side along with a paper seal
bearing the signatures of the panchas, the pax and the Customs officer. The same would be deposited vide
Detention Receipt (DR) No-61015 dated 20.06.2023 in valuable godown of Customs at IGI Airport, New
Delhi.Thereafter, the packing material used to pack the said chemical paste (2 greyish silver plastic
pouches) weighing 22.51 grams approx. was put into one transparent plastic container and further
wrapped with transparent adhesive tape over a paper slip bearing the dated signatures of the Panchas,
Mr. Mantu Kumar (Dob 01.01.2002) and the Customs Officers. The packing material weighing 22.51 grams
which was used to keep Gold in paste form was also then seized under Section 110 of the Customs Act,
1962 vide seizure memo dated 20.06.2023 on the reasonable belief that the same was used in packing of
the impugned Gold in chemical paste form, hence was liable for confiscation under Section 118 & 119 of
the Customs Act, 1962. The same will be deposited vide Detention Receipt (DR) No.-61016 dated
20.06.2023 in non-valuable godown of Customs at IGI Airport, New Delhi. All the proceedings were
recorded in Panchnama-3 dated 20.06.2023 (RUD-3).

13. During the proceedings on 20.06.2023, while passenger, Mr. Mantu Kumar (D.O.B – 01/01/2002),
Passport No. V3630121 coming from Sharjah to Delhi by Flight no. G9463 dated 19.06.2023 arrived at T-
3, IGIA, New Delhi on 20.06.2023 was under surveillance and also activities of one BWFS Staff were found
suspicious by the Customs Officers near the Flight gate No. 10B. He was found roaming near the Flight
gate 10B while on the call where suspectedly he was waiting to receive and handover the Gold in paste
form carried by Mr. Mantu Kumar from Sharjah to Delhi Airport vide the said Flight.

14. The said staff of BWFS was found to be one, Sh. Sunny Chauhan, working as CSA, BWFS (AEP
No. DEL2100477177), through the Duty Manager of BWFS, he was called back to the Airport while he was
on his way back home. He arrived at the Airport and joined the investigation proceedings. Thereafter, he
was given Summons dated 20.06.2023 and his Statement was recorded. In his Statement dated
20.06.2023 (RUD-4), Sh. Sunny Chauhan, inter-alia, stated as under:

On being asked about the happenings of 20.06.2023, he stated that he was called by the Customs
officers to appear in the Customs Preventive room situated at arrival hall of IGI Airport for some enquiry.
On being asked he stated that after reaching the Customs Preventive Room, Arrival Hall, T-3, Arrival Hall,
IGI Airport, New Delhi, he was told by the Customs officers that while one passenger Mr. Mantu Kumar
(D.O.B – 01/01/2002) holder of Indian Passport No. V3630121 has coming from Sharjah to Delhi by Flight
no. G9463 dated 19.06.2023 arrived at T-3, IGIA, New Delhi on 20.06.2023 was under surveillance and
also his activities were found suspicious by the Customs Officers near the Flight gate No. 10B, he was
found roaming near the Flight gate 10B while on the call where suspectedly he was waiting to receive and
handover the Gold in paste form carried by Mr. Mantu Kumar from Sharjah to Delhi Airport in Flight No.
G9463 dated 19.06.2023. He also stated he had also been informed that 2 greyish silver coloured plastic
pouches containing suspected gold paste had been recovered from Mr. Mantu Kumar and an uneven
shaped gold bar of 1536.59 has been extracted from the said paste. On being asked that was he planning
to collect gold paste, total weighing to 1805 grams (with packing material) from Mr. Mantu Kumar, he
stated that yes, he was instructed to collect 2 pouches containing gold paste and he was planning to
collect the said gold paste carried by some passenger who would come from Sharjah to Delhi on
20.06.2023 by Flight No. G9463 dated 19.06.2023, in the nearest washroom of Flight Gate No. 10B.
However, he did not know the name of the passenger, he was only instructed that the passenger would

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meet him in the washroom. While he would in the first toilet cabin inside the said washroom and he had
to collect Gold paste from him in the 2 nd toilet cabin in the said washroom. He further stated that now, he
believe that passenger was Mr. Mantu Kumar only. On being asked if he was planning to collect and carry
the above gold paste then why didn’t he do so and wait in the said washroom as planned and instructed to
him, he stated that while he attended the Flight No. G9463 dated 19.06.2023 which arrived at Delhi
Airport on 20.06.2023, he had apprehension and suspected presence of Customs officials nearby and he
got scared and left the Airport premises for heading towards his home in Palam, New Delhi. On beings
asked, if he would have collected the said gold paste from Manto Kumar, to whom he had to handover the
same, he stated that if everything had happened as per planning he would have delivered this gold paste
to a person named Kabir Siddiqui outside the Departure Hall, IGI Airport, New Delhi. On being asked about
Kabir Siddiqui and since when he knew him, he stated he came in his touch three years back when he
(Kabir Siddiqui) was also working at IGI Airport with United Airlines. On being asked did he indulge
earlier in carrying smuggled gold outside airport, he stated yes before this time, i.e., 20.06.2023 when he
was instructed/planning the collect the said gold paste, previously at three occasions, he had collected
pouches/packets containing gold paste/gold bar inside the airport (collected from the Pax(s) at the
nearest or next to nearest washroom at the Flight gate towards immigration) before immigration of the
pax(s) who carried the same and he handed over the same to Kabir Siddiqui outside departure. On being
asked to show the chats and any other communication on his mobile with Mr. Kabir Siddique, he stated
and voluntarily submitted his mobile phone Apple Iphone 14 white in colour having No. 8750198069 and
stated that we can check his chats or anything else on his mobile. On being asked about the details of
conduct and quantity of gold paste/gold illegally carried by him, earlier, outside Airport to evade Customs
Duty, he requested for some time for rest as he was on night duty which was from 09:00 PM on
19.06.2023 to 06:00 AM on 20.06.2023 now he was badly tired. He further requested that his further
statement may be recorded next day on 21.06.2023 at 10:00 AM onwards and he also requested that he
wanted to stay at the Airport overnight so that he can continue his statement tomorrow.

15. Since, the said BWFS Staff, Sh. Sunny Chauhan named Mr. Kabir Siddique as the receiver of
the above Gold paste and also stated he had also deliver him the gold/gold paste in the past 3 times, a
search was conducted, by the Team of Customs officers at the premises/home of Mr. Kabir Siddiqui at
House No. 3032, 4th Floor, Gazi wara, Daryaganj, Delhi-110002. During the said Search dated 20.06.2023,
one Pendrive, One HP Laptop and one Iphone X, black colour were resumed from the said premises as
detailed in the Panchnama dated 20.06.2023 (placed in the file for perusal pls) drawn on the spot. Mr.
Kabir Siddiqui was also served Summons dated 20.06.2023 for his appearance on the same day before
Custom Officer at Terminal-3, IGI Airport, New Delhi. As per the said Panchnama dated 20.06.2023,
nothing incriminating was found at the aforementioned premises of Mr. Kabir Siddiqui, however, the said
electronic devices were resumed for further investigation.

16. During the investigation, in view of the above, as directed, a letter dated 20.06.2023 was sent to to
the Director/CEO, M/s Omni Comp, F-128/3, 1 st Floor, Mohammadpur, Behind Bhikaji Cama Place, New
Delhi-110066, for forensic examination/data cloning of the aforementioned Mobile phone of the Pax, Sh.
Mantu Kumar, Mobile phone of Sh. Sunny Chauhan and Mobile Phone, Laptop and pendrive of Mr. Kabir
Siddiqui (3 devices resumed during the aforementioned search dated 20.06.2023) and in response to
which Sh. Bhupendra, Forensic Expert, arrived, on 20.06.2023, in the office to conduct the Forensic/data
cloning proceedings.

17. Accordingly, on 20/21.06.2023, the forensic examination proceedings of the aforementioned

respective devices of the Pax, Sh. Mantu Kumar and Sh. Sunny Chauhan were conducted, vide the
Panchnama dated 20/21.06.2023 (RUD-5), in presence of the Custom officers, Sh. Mantu Kumar, Sh.
Sunny Chauhan and 2 independent witnesses (Panchas), by Sh. Bhupendra, Forensic Expert, M/s. Omni
Comp, F-128/3, 1st Floor, Mohammadpur, New Delhi – 110066, holder of AEP No. DEL0202586. After the
data retrieval of the said devices under Panchnama proceedings, the aforementioned Phone (Mobile

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phone of Tecno brand having IMEI No. 353465110098934 of the Pax, Mr. Mantu Kumar was returned to
him on the spot and the device (Iphone 14) of Sh. Sunny Chauhan was detained, as case property, the
same would be deposited in the Non valuable warehouse/godown, Customs, Terminal-3, IGI Airport, New
Delhi. The device detained during the said Panchnama was 1 white colour Mobile phone of Sh. Sunny
Chauhan [01 Apple Iphone 14 having IMEI No. 353267563755626, detained vide Detention Receipt (DR)
No. 45601 dated 21.06.2023] and the same was put into transparent plastic container, wrapped with
Customs tape and plier sealed with PAIGI on one side and Ashok Stambh on another side.

Thereafter, the data retrieved from both the aforesaid devices using Celibrite Software was copied
into 2 hard drives, both of Seagate brand having capacity of 1 TB, having Sl. No. NB1893QM and Sl. No.
NB18931V respectively having the same data and both were put into the transparent plastic container,
wrapped with Customs tape and plier sealed with ‘PAIGI’ on one side and ‘Ashok Stambh’ on another side.

18. On 20.06.2023, Mr. Kabir Siddiqui reached the Custom Shift Preventive office, Arrival Hall,
Terminal-3, IGI Airport, New Delhi and in response to the Summons dated 20.06.2023, submitted a letter
dated 20.06.2023 wherein he had stated that he was not feeling well and will not be able to participate in
the Summons proceedings and requested to carry out the Summons proceedings on 21.06.2023, he also
stated he want to take rest for that night at the Airport only and he would attend further proceedings on
21.06.2023.

19. Subsequently, on 21.06.2023, the forensic examination/data cloning proceedings of the

aforementioned devices of Mr. Kabir Siddiqui were conducted, vide the Panchnama dated
21.06.2023 (RUD-6 ), in presence of the Custom officers, Sh. Mr. Kabir Siddiqui, Sh. Mantu Kumar, Sh.
Sunny Chauhan and 2 independent witnesses (Panchas), by Sh. Bhupendra, Forensic Expert, M/s. Omni
Comp, F-128/3, 1st Floor, Mohammadpur, New Delhi – 110066, holder of AEP No. DEL0202586. After the
data retrieval of the said devices under Panchnama proceedings, the whole retrieved/cloned data of the
Phone, pendrive and Laptop of Mr. Kabir Siddiqui was copied into the aforementioned 2 hard drives (after
taking them out of the sealed plastic container), after which, one such hard disc (Sl. No. NB1893QM) was
given to the Custom Officer as the working copy and the other hard disc (Sl. No. NB18931V) and cloned
hard disc (Sl. No. WKPYGPQR OF Seagate brand, 1 TB capacity), containing cloned data of the aforesaid
Laptop, were both put into the transparent plastic container, wrapped with Customs tape and plier sealed
with ‘PAIGI’ on one side and ‘Ashok Stambh’ on another side, the same were detained vide Detention
Receipt (DR) No. 45603 dated 21.06.2023 and the same would be deposited in the Non valuable
warehouse/godown, as case properties.

Further, the aforementioned devices of Mr. Kabir Siddiqui, i.e., 1 Mobile Phone (Iphone X, Black
colour having IMEI No. 359412081482444, 1 pendrive (Sandisc Cruizer Blade, 32 GB, No.
BM230353544W-Made in Malaysia) and 1 laptop (Hp Laptop of Grey Colour, Probook 4440S, Device
Name: DESKTOP-33S3JGQ, Product id: 00331-10000-00001-AA412, Device id: 5458A443-DA27-4DA7-
AID5-90A57A2C12C2), were detained, as case properties vide Detention receipt (DR) No. 45602 dated
21.06.2023] and were all put into the corrugated box, then wrapped with Customs tape and plier sealed
with PAIGI on one side and Ashok Stambh on another side, the same would be deposited in the Non
valuable warehouse/godown, Terminal-3, IGI Airport, New Delhi.

20. During the investigation, Statement of the Pax, Sh. Mantu Kumar was taken on 20.06.2023,
21.06.2023 and 22.06.2023, in the said Statements (RUD- 07, 08 & 09) , Sh. Mantu Kumar, inter-
alia, stated as under:

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 On being asked about the happenings of 20.06.2023, he stated that he arrived on 20.06.2023 at
T3, IGI airport Delhi by Flight G9463 dated 19.06.2023, he further stated that he was intercepted by the
Customs officers after crossing green channel.Thereafter, he stated that upon his personal search, the
Customs Officers recovered two greyish silver colored plastic pouches suspected to contain gold in paste
form weighing to 1805 grams including packing material which he kept in his front two pockets of the
Black coloured Jeans pant worn by him. He stated that thereafter he alongwith Customs officers and 2
independent witnesses/panchas visited at the premises of M/s Sovreign Metals Limited, 121 FF, Gold
Tower, gali No. 38, Gurudwara Road, Karol Bagh New Delhi 110005 wherein extraction proceedings from
the above gold paste was conducted and a certificate regarding extraction and it’s outcome was given to
the Officers. Later, the extracted yellow metal bar of uneven shape (extracted from the aforementioned
Gold paste) was presented before the Jewellery Appraiser and he gave his Appraisement Report dated
20.06.2023. He further stated that he agreed with the contents of the said Appraisement Report dated
20.06.2023. He stated that he agreed with the correctness of the proceedings conducted under
Panchnama-1, Panchnama-2 and Panchnama-3, all dated 20.06.2023 and he had already put/appended
his dated signature on the said 3 Panchnamas as a token of correctness of the same. On being asked about
his profession, he stated that he is a farmer and monthly income is Rs. 10, 000/- per month; that he went
to Sharjah on 05.06.2023; that one person named Sunny Sharma booked his tickets to Sharjah. Sh. Sunny
sharma is a local travel agent; that he was unemployed, and wanted to earn money hence he decided to go
abroad to search for a job and he borrowed Rs. 80,000 /-. from his relatives for purchasing air ticket and
other expenses in Sharjah; that he had never visited abroad, this was his first abroad visit to Sharjah.On
being asked about who gave him the aforementioned Gold in paste form, i.e., in 2 greyish silver colour
plastic pouches total weighing 1805 grams including packing material, he stated that he went to Sharjah
in search of job. There in Sharjah, he tried to get a job but even after 10 days he could not get success in
getting a job and his all the money got exhausted that he carried from India to Sharjah; that he was not
having funds even to purchase return flight ticket. Then to get return flight ticket he met with a person
named Bablu in Dubai who assured him that he could arrange return ticket for him but he will have to
carry 2 small packets (greyish silver in colour) to Delhi and since at that time he was in need, so he
accepted his condition with thinking that there may be illegal/contraband goods in the said packets. Sh.
Bablu asked him that after landing of his flight in Delhi, he would be instructed by one person named Raja
as to where and to whom he had to give the aforesaid Gold paste. He further said that a person will contact
him and will collect both the packets from him in the said Wash Room. Upon landing in Delhi, he was
being called and instructed by one person from Whats app call No. +971 586403423 (Saudi No.) that he
had to go to the First rest/wash room from the flight gate (No. 10) when he would be on the way to
immigration, for delivery of the said 2 pouches (gold paste). He further stated that he didn’t know any
contact address or phone no. of Bablu. On being asked about the owner of the aforementioned gold paste
(a gold bar of uneven shape weighing 1536.59 grams after extraction) recovered from him and whether
he possess any licit documents in respect of the said gold paste recovered from him, he stated he didn’t
know the owner of this gold paste, as already stated above that he was told that someone will identify him
at the aforementioned washroom at airport and will collect the gold from him; that he did not know the
phone no. and the exact address of Mr. Bablu. He lives somewhere in Sharjah. On being asked, he stated
that he is aware that smuggling of gold in India is an offence and he can be punished for the same as per
Law and he agree that he have violated the law & rules of Customs Act; that he was aware that there is
Customs duty on import of gold, which he had to declare at Customs Red Channel for payment of
applicable customs duty but he did not do so and also tried to carry the same in concealed manner from
green channel; that he admit his mistake of illegally smuggling gold into India and request that his acts of
commission and omission may be forgiven. On being asked that he had stated that he was being instructed
to handover the two pouches containing the Gold paste to someone in the nearest Washroom from Flight
date No. 10B on the way to immigration. If so, why didn’t he handover the said 2 pouches in the
washroom, he stated that he went towards the said washroom near Flight gate No. 10B but he got little
confused and also he suspected that he was being followed by Govt. authority. Hence, he decided to take
the aforementioned 2 pouches containing gold paste with him and tried to clear the Green channel at the

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arrival; that he thought someone would contact him once he would be outside the Airport for delivery of
the said 2 pouches containing gold paste. On being asked whether he had ever met Sunny Chauhan or did
he know him, he stated he didn’t know any person of this name and had neither met any person of this
name nor have he had received any telephonic call from him. On being asked whether he knew Mr. Kabir
Siddique, he stated that he didn’t know any person named as Kabir Siddique.

21. Further, during the investigation, further Statements dated 21.06.2023 and 22.06.2023 (RUD-
10 & 11) (in continuation of his earlier Statement dated 20.06.2023) of Sh. Sunny Chauhan were
recorded under Section 108 of the Customs Act, 1962 before the Air Customs Superintendent wherein he,
inter-alia, stated as under:

(a) On being asked to give the details of dates of conduct and quantities of gold/gold paste illegally
carried by him in the past from inside the premises of Arrival, T-3, IGI Airport, New Delhi to outside the
Airport to evade Customs Duty, he stated that he had carried the gold three times before 20.06.2023; that
he collected pouches/packets containing gold/gold paste from inside the airport before immigration, and
handed over to Mr. Kabir Siddiqui outside the departure Hall, Terminal-3, IGI Airport, New Delhi. He gave
the details as under:
“
i. First time he received the pouch containing gold in the first week of February, 2023, not remembering
exact date. To collect the said pouch containing gold he went to nearest wash room (towards way to
immigration) of the Flight gate (No. I don’t remember) of Flight No. G9-463 and entered in the adjacent
cabin of 1st toilet (2nd Toilet), in which passenger who carried gold illegally from Sharjah was already
sitting (inside the 1st Toilet). As instructed telephonically by Mr. Kabir, he put his hand under the
separation sheet of 2nd Toilet and the pax handed over pouch containing gold to him (under the 1st Toilet).
The quantity of gold was about 1 Kg.
ii. Second time he received packet containing gold paste on the night of 16/17 June, 2023 at about 4 AM
(17.06.2023). To collect the said pouch containing gold paste, he went to nearest wash room (towards
immigration) of the Flight gate (No. 22) of Flight No. G9-463 and entered in the adjacent cabin of 1 st toilet
(2nd Toilet), in which passenger who carried gold illegally from Sharjah was already sitting (inside the 1 st
Toilet). Again, as instructed telephonically by Mr. Kabir, he put his hand under the separation sheet of 2 nd
Toilet and the pax handed over pouch containing gold paste to him (under the 1st Toilet). The weight of the
gold paste was about 1 kg.
iii. Third and the last time he received packet containing gold paste/gold on the night of 18/19 June from
the same flight i.e. G9-463 at approx. 4 AM (on 19.06.2023 at Flight gate 8B). He again collected the
pouch containing gold in the same manner (however, collected in the washroom next to the nearest
washroom from the Flight gate No. 8B on way to immigration) as stated above. The quantity of the
gold/gold paste was around 1 Kg.”

(b) On being asked that whether in all the above incidents, he was taking instructions from Mr.
Kabir Siddique and also did every time he handed over the collected Gold/gold paste to him and about
the phone number of Mr. Kabir from which he used to call/instructed him, he stated that yes every
time as mentioned above, he was taking instructions from Mr. Kabir Siddiqui and handover the
gold/gold paste, collected from Passenger, to him outside the Departure Hall, T-3, IGI Airport, New
Delhi; that he always called him through Whatsapp and phone number was not Indian (He didn’t
remember the phone no.); that when he was called by the department to appear, on 20.06.2023, he
deliberately deleted all the call and chat records; that whether he had done such activity of smuggling
gold with persons other than Mr. Kabir Siddiqui or received such offer from other persons, he replied
in negative and stated Mr. Kabir is the only person for whom he had worked. On being asked, he stated
that he was paid by Mr. Kabir, Rs. 6,000/-for first time in the month of February, 2023, Rs. 8,000/- in
the night of 16/17 June, 2023 and Rs. 16,000/- on the night of 18/19 June, 2023 after handing over
the pouch containing gold/gold paste to Mr. Kabir inside his Car outside the T-3, Departure Hall, IGI
Airport, New Delhi; that Mr. Kabir used to come to collect pouch containing gold/gold paste in his car

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 of silver color, Ritz Car and as far as he remember the number of car was DL9CL5064; that he don’t
know Ibrahim, Nadeem, Asharaf & Rizwi his contact was only with Kabir Siddiqui; that no staff of
airport assisted him in his conduct of illegal transaction of Gold; that every time he opted to exit from
the passage for staff tht is between Red Channel and Protocol Counter in arrival hall. After exit from
the arrival hall he used escalator to go to departure hall and again took exit from staff gate i.e. near
gate no. 08 of Departure and from there straight to the outer most lane where kabir used to come in
his Silver Colour Ritz Car.

22. Further, a Statement dated 21.06.2023 of Mr. Kabir Siddiqui (RUD-12 ) was recorded wherein
he, inter-alia, stated as under:

He stated that he had been told by the Customs officer that one passenger named Mantu Kumar
(D.O.B – 01/01/2002) S/o Dahari Paswan R/o Vill Khorouli, Post- Sahatwar, Ballia,-277211 UP, holder of
Indian Passport No. V3630121 issued on 17.11.2021, expiry date on 16.11.2031, coming from Sharjah to
Delhi by Flight no. G9463 dated 19.06.2023 arrived at T-3, IGIA, New Delhi on 20.06.2023 has been
detained by the Customs department for smuggling gold in paste form weighing to 1805 grams including
packing material. And a gold bar of uneven shape weighing to 1536.59 grams has been extracted by the
said paste. And during investigation proceedings one ground staff namely, Sh. Sunny Chauhan, working as
CSA, BWFS (AEP No. DEL2100477177) has revealed that he was working for him and in his statements
dated 20.06.2023 and 21.06.2023 he has submitted that he carried the gold three times, collected
pouches/packets containing gold/gold paste from inside the airport before immigration, and handed over
to him outside the departure Hall, Terminal-3, IGI Airport, New Delhi. Both the statement dated 20.06.23
and 21.06.23 tendered by Sunny Chauhan (D.O.B – 19/12/1991) S/o Sh. Rajpal are being shown to him.
And in token of having seen and understood the same and having the same been found correct by him, he
had signed on the body of both the said statements. On being asked whether agrees with the contents of
the statements dated 20.06.2023 and 21.06.2023 given by Sunny Chauhan, he stated in affirmative and he
agrees with the contents of the statements dated 20.06.2023 and 21.06.2023 given by Sh. Sunny Chauhan .
And in token of having seen and understood the same and having the same been found correct by him, he
had already signed on the body of both the said statements. On being asked whether he is the owner of
gold carried by Sh. Sunny Chauhan from the Passengers outside the Airport and which was handed over to
him outside departure hall, T-3, IGI Airport, New Delhi as per Sunny Chauhan’s Statements dated
20.06.2023 and 21.06.2023 or is it anyone else who is the owner of the said gold/gold paste and has
managed to smuggled three times in the past and was attempted to smuggle fourth time in the morning of
20.06.2023 stated by Sunny Chauhan in his aforementioned 2 Statements and also explain in detail, the
modus operandi for the said smuggling of gold/gold paste, he stated that he is not the owner of the gold,
probably Mr. Nadeem may be the owner. Mr. Ibrahim S/o Ashraf contacted him to have a word with Mr.
Nadeem that he wanted to work at IGI airport, with his help as he had a contact in IGI Airport New Delhi.
On being asked about the nature of work, Mr. Nadeem told him that he wanted to smuggle gold through
IGI Airport New Delhi, he also told that he will give good amount of money for every successful
transaction/smuggling of Gold/Gold paste. On being asked, about Ibrahim and how did he know him, he
stated that Mr. Ibrahim was his friend, he resided in Dubai. Ibrahim has a shop of jewellery over there. Mr.
Ashraf is his father and he has a shop of Money exchange near Jama Masjid, Delhi-110006. On being asked
about the role of Mr. Nadeem in the said smugglings of gold/gold paste, he stated that Mr. Nadeem was the
person who contacted the passenger and collected gold from him (which was carried by the passenger
and collected by Mr. Sunny Chauhan and was handed over to him outside departure hall, T-3, IGI Airport,
New Delhi). He further stated that Mr. Nadeem came with him all the four times (including morning of
20.06.2023) in his car (Ritz Car, RC number: DL9CL5064, registered in his mother’s name) and received
the packet/pouch of Gold 3 times before the morning of 20.06.2023. On being asked, what was the total
quantity of gold successfully smuggled three times, as stated by him and Mr. Sunny Chauhan, he stated
that in the said three times, total quantity of Gold/gold paste was approximately 1 Kg each time, so in

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total, approximately 3 Kg quantity of gold/gold paste has been smuggled, the same was collected by Mr.
Sunny Chauhan from the passengers from Flights as stated by Sunny in his Statement dated 21.06.2023
and was handed over to him outside the Departure Hall, near Gate No. 3, he handed over the same to Mr.
Nadeem. On being asked the phone number and address of Mr. Nadeem, he stated that he d idn’t know the
address of Mr. Nadeem, further when Customs Officers came to his home for search on 20.06.2023, he
deleted his number, however he would try to provide his contact number at the earliest. On being
asked, whether he had done such activity of smuggling of gold with persons other than Mr. Nadeem or
received such offer from other persons, he stated that another person Mr. Rizvi also came with Nadeem on
20.06.23 and during discussion in the car it appears that he is also involved in the gold smuggling. He
doesn’t have any contact detail of Mr. Rizwi. On being asked what amount of money or anything else was
given to him for handing over Packet/Pouch of gold illegally outside the Airport to Nadeem, he stated he
was paid Rs. 25000/- per consignment by Mr. Nadeem each of the aforementioned 3 times. On being
asked, he stated that he is aware that smuggling of gold in India is an offence and he can be punished for
the same as per Law and he agrees that he have violated the law & rules of Customs Act; that he was
aware that there is Customs duty on import of gold, which one had to declare at Customs Red Channel for
payment of applicable customs duty but he helped passengers in not declaring the same and carried the
same in concealed manner from green channel; that he admit his mistake of smuggling gold into India and
request that his acts of commission and omission may be forgiven.

24. It may be noted that in the aforementioned Statement dated 21.06.2023 of Mr. Kabir Siddiqui, he
named Mr. Nadeem as the mastermind behind the smuggling of gold in the instant case and in the
aforementioned past smuggling events as well and he also mentioned that he was introduced to Mr.
Nadeem by his friend Ibrahim who resides in Dubai and Mr. Ibrahim had a shop of Jewellery over there.
He also stated that Mr. Ashraf is Mr. Ibrahim’s Father and he has a shop of Money Exchange near Jama
Masjid Delhi-110006.

25. Accordingly, a search was conducted on 21.06.2023 at the premises, M/s Ashraf Forex Private
Limited, Shop No. 625, Bazar Chitli Qabar, Matia Mahal Rd., Kalan Mehal, Chandni Chowk, New Delhi-
110006. From the said premises of Mr. Ashraf/Mr. Ibrahim, whereas nothing incriminating was found,
however some documents such as Cash Memo/Purchase/Sales registers etc were resumed and also two
stones used for grinding gold for checking its purity were resumed by the Air Customs Superintendent,
Customs Preventive, Group-V, New Custom House, New Delhi-110037 (Search warrant holder), under
Panchnama dated 21.06.2023, drawn by him on the spot. Also, Mr. Syed Ashraf Ali (alias Mr. Ashraf) and
his son Mr. Mohd. Ibrahim (alias Mr. Ibrahim/Syed Ibrahim Ali) were summoned vide Summons dated
21.06.2023, for their appearance/statement in the Customs Shift Office, Arrival Hall, Terminal-3, IGI
Airport, New Delhi-110037, on 22.06.2023.

26. On 22.06.2023, the Statements of both, Mr. Syed Ashraf Ali (DOB:15.08.1960) and his son
Mr. Mohd. Ibrahim (DOB: 24.04.1997) (RUD-14) were recorded under Section 108 of the Customs Act,
1962 before the Air Customs Superintendent, Preventive Shift A, Customs, Arrival Hall, Terminal-3, IGI
Airport, New Delhi.

In his Statement dated 22.06.2023 (RUD-13), Mr. Syed Ashraf Ali stated as under:

On being asked about Ibrahim, his profession and his whereabouts, he stated that Ibrahim is his
son and is unmarried; that Mr. Ibrahim has a small shop of Jewellery in Dubai and presently he is India
and is coming for the Statement in response to the Summons dated 21.06.2023. On being informed that a
case of smuggling of Gold has been booked in IGI Airport and in which one of the alleged person is Kabir
Siddiqui has stated that Ibrahim is the person who introduced him with Nadeem and whether he knows
Kabir and Nadeem, he stated that he didn’t know Nadeem, however he had sometimes seen Kabir with
Ibrahim and he may be their friend. On being asked whether he knew Sh. Sunny Chauhan, he replied in

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negative. On being asked about his business, he stated that he had a shop of Money Changer, in his name
and style i.e. M/s Ashraf Forex Pvt. Ltd. At Shop No. 625 bajar Chitli Kabar Jama Masjid Delhi 110006 and
he alone looks after the business of his shop and Ibrahim had no relation with this. On being asked when
did Ibrahim come to Delhi, he stated that he came Delhi 2 months back for his marriage . On being asked
whether ever he noticed/observed his activities suspicious, he stated in negative and replied he never
noticed his activities suspicious. He further stated he had nothing to add and assured that as and when he
would be called, he would appear before the Department.

27. Later, Mr. Mohd. Ibrahim appeared in the office and his Statement was recorded. In his Statement
dated 22.06.2023 (RUD-14), Mr. Mohd. Ibrahim (Mr. Syed Ashraf Ali’s son) stated as under:

On being informed that a case of smuggling of Gold had been booked in IGI Airport and one of the
alleged person that is Kabir Siddiqui had stated that Ibrahim is the person who introduced him with
Nadeem and does he know Nadeem and Kabir Siddiqui and if yes since when, he stated that he know both
of them, Nadeem used to come in his father’s shop for Currency change and Kabir Siddiqui met with him
in a Gym. He further stated that he knew Kabir for almost a year and Nadeem for almost six to seven
months. On being asked why did he introduce Kabir with Nadeem, he stated that as far as he remembers,
in the engagement party of his cousin sister, Nadeem and Kabir Siddiqui both have came and during
discussion, he introduced both of them with each other and he was not aware about the intention of
Nadeem, he was never told by any of them about their smuggling related activities. On being asked about
the contact details of Mr. Nadeem, he stated that his (Nadeem’s) Mobile No. is 8920051108, however he
didn’t know his address. On being asked whether he knew Sh. Sunny Chauhan and Mr. Rizwi, he replied in
negative. On being asked about his business and monthly income, he stated that he had a small rented
shop of jewellery in Dubai for almost two years, and most of the time he resides over there; that he came
India in the second week of April for his marriage preparation; that his monthly income is almost 40-50
thousand per month.He further stated that he had nothing to add and assured that as and when he would
be called for, he would appear to cooperate in investigation proceedings.

28. On 22.06.2023, another Statement of Mr. Kabir Siddiqui (in continuation of his earlier Statement
dated 21.06.2023) was recorded under Section 108 of the Customs Act, 1962 before the Air Customs
Superintendent. In his Statement dated 22.06.2023 (RUD-15), Mr. Kabir Siddiqui, inter-alia, stated as
under:

(a) On being asked to give the details of dates of conduct and quantities of gold/gold paste illegally
carried by him in the past to evade Customs Duty, he stated that three times, he collected
pouches/packets containing gold/gold paste from Sunny Chauhan, and handed over to Mr. Nadeem, who
was with him in his Car outside the departure Hall, Terminal-3, IGI Airport, New Delhi. He further stated
the following:
“
i. First time he received the pouch containing gold in the first week of February, 2023 from Sunny
Chauhan, not remembering exact date and handed over pouch containing gold to Nadeem. He was
not aware about the exact quantity of gold, however it was approx. 1kg.
ii. Second time he received packet containing gold paste on the night of 16/17 June, 2023 at about
4:15 AM (17.06.2023) from Sunny Chauhan. He was not aware about the exact quantity of gold,
however it was approx. 1kg.
iii. Third and the last time he received packet containing gold paste/gold on the night of 18/19 June at
approx. 4:10 AM from Sunny Chauhan and handed over the same to Nadeem who was sitting in his
Car. All the three times he was not aware about the quantity and weight of pouch containing
gold/gold paste, however it was approx. 1kg every time. ”

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(b) On being asked that in all the above incidents, was it him who was giving instructions to Sunny
Chauhan and also did every time he collected Gold/gold paste from Sunny Chauhan and handed over the
same to Mr. Nadeem, he replied in affirmative and stated that as mentioned above, he was giving
instructions to Sunny Chauhan and was collecting (Gold/Gold paste from Sunny Chauhan) and handing
over the gold/gold paste to Nadeem outside the Departure Hall, T-3, IGI Airport, New Delhi; that he
always called Sunny Chauhan through Whatsapp and phone number was not Indian and he doesn’t
remember the phone no. He reiterated that when he was called by the department to appear, on
20.06.2023, he deliberately deleted all the call and chat records. He further reiterated his earlier
statement dated 21.06.2023 and stated that he had nothing more to state.

29. It is, therefore, apparent that the Pax, Mr. Mantu Kumar had attempted to smuggle the said seized
gold in paste form totally valued at Rs. 80,39,669/- (Rupees Eighty Lakhs Thirty Nine Thousand Six
Hundred Sixty Nine only). Further, it also appears that the seized gold cannot be termed as bonafide
baggage as it was apparently in huge/ commercial quantity, thereby contravening the provisions of
Notification No. 12/2012-Cus dated 17.03.2012 (as amended).

30. From the above, as the value of said recovered gold is more than Rs. 50,00,000/-, therefore in
terms of Circular No. 38/2013-Customs dated 17.09.2013, Circular No. 28/2015-Customs dated
23.10.2015 as amended vide Circular No. 13/2022-Customs dated 16.08.2022 regarding guidelines for
arrest in relation to offences punishable under the Customs Act, 1962 issued by the CBEC, the Pax, Mr.
Mantu Kumar, has committed an offence punishable under the Sections of 132 and 135 of the Customs
Act, 1962.

31. Further, from the above it is clear that in the instant case of 20.06.2023, Sh. Sunny Chauhan, BWFS
Staff, Airport and Mr. Kabir Siddiqui have a key role, as receivers of aforementioned smuggling of the said
gold weighing 1536.59 grams extracted from Gold paste, they have also admitted the same in their
respective Statements dated 20.06.2023, 21.06.2023 and 22.06.2023 (Sh. Sunny Chauhan) and dated
21.06.2023 and 22.06.2023 (Mr. Kabir Siddiqui). Thus both have admitted that they meticulously
designed to plan to smuggle the foreign origin gold in India through the handing/taking over the gold in
the washroom near the Flight gate and helping in evading the Customs international Channel to avoid
attracted customs import duty on such import of gold from abroad to India; that both have stated that
earlier also they have helped in smuggling of gold of around 3 Kgs in total (1 Kg in 1 st week of February,
2023, 1 Kg in the morning of 17.06.2023 and 1 Kg in the morning of 19.06.2023; wherein Sh. Sunny
Chauhan was taking instructions from Mr. Kabir Siddique for collection and handing over of the gold items
from inside the Airport to outside the Airport; that both have admitted the same in their respective
aforementioned Statements and have agreed that they had violated the law & rules of Customs Act; that
they were aware that there is Customs duty on import of gold, and that they admitted his mistake of
helping the passengers/handlers in smuggling gold into India.

32. Hence, including the attempted smuggling of 1805 grams gold paste (after extraction: 1536.59
grams) in the instant case on 20.06.2023 and previous aforementioned 3 times, they had a key role in
smuggling of gold/gold paste of around 3 Kg. The respective value of Gold as per relevant Customs
Notifications are as under:

Time period Approx Tariff value As per Customs Notification No.

quantity of of Gold in
Gold (in INR
grams)
1st week of 1000 51,30,500 Rate of Gold as per Notification No.
February, (approx..) 07/2023 – Customs (N.T.) dated

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2023 31.01.2023 is USD 620 per 10 Grams.
Exchange Rate of USD as per
Notification No. 08/2023 – Customs
(N.T.) dated 02.02.2023 is Rs. 82.75.
Morning of 1000 (approx.) 52,32,150 Rate of Gold as per Notification No.
17.06.2023 45/2023 – Customs (N.T.) dated
Morning of 1000 (approx.) 52,32,150 15.06.2023 is USD 630 per 10 Grams.
19.03.2023 Exchange Rate of USD as per
Morning of 1536.59 80,39,669 Notification No. 44/2023 – Customs
20.06.2023 (N.T.) dated 15.06.2023 is Rs. 83.05.
Total 4536.59 2,36,34,469/-

33. Hence, Sh. Sunny Chauhan and Mr. Kabir Siddiqui have played an active role in smuggling of total
of 4536.59 grams having total Tariff value of Rs. 2,36,34,469/- in the past and attempted smuggling of
aforementioned gold paste in the morning of 20.06.2023. Hence, they both have committed an offence
punishable under the Sections of 132 and 135 of the Customs Act, 1962. And in view of the foregoing acts
of omission and commission. Sh. Sunny Chauhan and Mr. Kabir Siddiqui both were placed under arrest
under Section 104 of the Customs Act, 1962 for non-bailable offence in view of the above quoted
Circulars/Notifications. Due procedure as per law will be followed subsequent to the arrest.

34. Further, in view of the foregoing acts of omission and commission, the Pax, Mr. Mantu Kumar was
also placed under arrest under Section 104 of the Customs Act, 1962 for bailable offence in view of the
Circulars/Notifications mentioned above. Further, due procedure as per law will be followed subsequent
to the arrest.

36. In case of the Pax, Mr. Mantu Kumar, it may be noted that as the offence committed by the said Pax is a
bailable offence in terms of Circular No. 38/2013-Customs dated 17.09.2013, Circular No. 28/2015-Customs
dated 23.10.2015 as amended vide Circular No. 13/2022-Customs dated 16.08.2022 regarding guidelines for
arrest and bail in relation to offences punishable under the Customs Act, 1962 and other relevant provisions of
the Customs Act, 1962, on 23.06.2023, the Pax, Mr. Mantu Kumar was given the Bail Offer dated 23.06.2023 on
condition of surety of Rs 25,000/- in the form of fixed bank deposit in the favour of the President of India
through the Commissioner of Customs, IGI Airport, New Delhi. The Pax accepted the said Bail Offer dated
23.06.2023. The bailer, Abhay Narayan Prasad (DOB:09.08.1975), S/o Late Sh. Dwarika Prasad, Khorouli,
Ballia, Uttar Pradesh-277211 having PAN Card No. CLLPP9279E and Aadhar No. 4440 7105 3558, while agreed
to become surer, however, vide his letter dated 23.06.2023, requested for grant of Bail against submission of
cash of Rs. 25,000/- mentioning that FDR could not be made in view of the Banks closed on the day and
committed that he would submit the FDR by the end of this month, i.e. June, 2023

38. In view of the above, the Pax, Mr. Mantu Kumar was granted bail on 23.06.2023 (at 1730 hrs.) on the
surety of Rs. 25, 000/- submitted in cash in lieu of FDR required for granting the bail and upon commitment by
the bailer Mr. Abhay Narayan Prasad, vide his letter dated 23.06.2023, to submit the FDR of Rs. 25,000/- by the
end of June, 2023. However, in this case no FDR amounting to Rs.25,000/- received till date.

39. Further, in response to Summons dated 10.10.2023, 24.10.2023 & 22.11.2023 issued to Mr.
Sunny Chauhan and Mr. Kabir Siddiqui to tender their Statement(s) under Section 108 of the Customs
Act, 1962 on 20.10.2023, 01.11.2023 & 29.11.2023 respectively. However they did not appeared before
the Air Customs Superintendent at Customs Preventive Arrival hall, Terminal-3, Office of the
Commissioner IGI Airport, New Delhi.

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39. And whereas, the proceedings for the disposal of the Seized Gold total
weighing 1536.59 Grams were carried out and Pre-Trial was done on 29.08.2023 by
the Commissioner of Customs (Appeal) in terms of Section 110(1D) of Customs Act
1962. Further, RFD was issued vide C. No.
VIII(AP)10/OP/08/Part-IX/RFD/2022/24839 dated 31.08.2023 and the said gold
has been disposed of by way of handing over it to SPMCIL.

40. And whereas, the relevant statutory provisions as appearing to be

applicable in the case are as under:
(I) As per Section 2(3A) of Customs Act, 1962, “beneficial owner” means any
person on whose behalf the goods are being imported or exported or who
exercises effective control over the goods being imported or exported;
(II) As per Section 2(22) of the Customs Act,1962 ‘goods’ includes baggage;
(III) As per Section 2(33) of the Customs Act, 1962, “prohibited goods” means
any goods the import or export of which is subject to any prohibition under this
Act or any other law for the time being in force but does not include any such
goods in respect of which the conditions subject to which the goods are
permitted to be imported or exported have been complied with;
(IV) As per Section 2(39) of the Customs Act , 1962 ‘smuggling’ in relation to
any goods, means any act or omission which will render such goods liable to
confiscation under Section 111 or 113, ibid;
(V) As per Section 11A (a) of the Customs Act,1962, ‘illegal import’ means the
import of any goods in contravention of the provisions of this Act or any other
law for the time being in force;
(VI) As per Section 77 of the Customs Act, 1962 the owner of any baggage
shall, for the purpose of clearing it, make a declaration of its contents to the
Proper Officer;
(VII) As per Section 78 of the Customs Act, 1962, the rate of duty and tariff
valuation, if any, applicable to baggage shall be the rate and valuation in
force on the date on which a declaration is made in respect of such baggage
under Section 77 of the Customs Act, 1962;

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(VIII) As per Section 79 of the Customs Act 1962, which exempts only bona fide
baggage from duty, the Proper Officer may, subject to any rules made
under Sub-section (2), pass free of duty–
(a) Any article in the baggage of a passenger or a member of the crew in
respect of which the said officer is satisfied that it has been in his use for
such minimum period as may be specified in the rules;
(b) Any article in the baggage of a passenger in respect of which the said
officer is satisfied that it is for the use of the passenger or his family or is
a bona fide gift or souvenir; provided that value of each such article and
the total value of all such articles does not exceeds such limits
has may be specified in the rules;
(IX) As per Section 110 of the Customs Act, 1962 the Proper Officer can seize
any goods, if he has reasons to be believe that the goods are liable to
confiscation under the Act, ibid;
(X) As per Section 111(d) of the Customs Act, 1962 any goods which are
imported or attempted to be imported or brought within the Indian Customs
Waters for the purpose of being imported, contrary to any prohibition
imposed by or under this Act or any other law for the time being in force,
shall be liable to confiscation;
(XI) As per Section 111(i) of the Customs Act, 1962 any dutiable or prohibited
goods found concealed in any manner in any package either before or after
unloading thereof, shall be liable to confiscation;
(XII) As per Section 111(j) of the Customs Act, 1962 any dutiable or prohibited
goods removed or attempted to be removed from a Customs Area or a
warehouse without the permission of the Proper Officer or contrary to the
terms of such permission, shall be liable to confiscation;
(XIII) As per Section 111(l) of the Customs Act, 1962, any dutiable or prohibited
goods which are not included or are in excess of those included in the
entry made under this act, or in the case of baggage in the declaration
made under Section 77; shall be liable to confiscation;

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(XIV) As per Section 111(m) of the Customs Act, 1962, any goods which do not
correspond in respect of value or in any other particular with the entry
made under this act or in the case of baggage with the declaration made
under Section 77 in respect thereof, or in the case of goods under
transshipment, with the declaration for transshipment referred to in the
proviso to sub-section (1) of section 54; shall be liable to confiscation;
(XV) As per Section 111(o) of the Customs Act, 1962, any goods exempted,
subject to any condition, from duty or any prohibition in respect of the
Import thereof under this Act or any other law for the time being in force, in
respect of which the condition is not observed unless the non-
observance of the condition was sanctioned by Proper Officer;
(XVI) As per Section 112(a) of the Customs Act, 1962, any person, who in relation
to any goods, does or omits to do any act which act or omission would render
such goods liable to confiscation under Section 111, or abets the doing or
omission of such an act, shall be liable to penalty;
(XVII) As per Section 112(b) of the Customs Act, 1962, any person, who acquires
possession of or is in any way concerned in carrying, removing, depositing,
harboring, keeping, concealing, selling or purchasing, or in any other manner
dealing with any goods which he knows or has reason to believe are liable to
confiscation under Section 111, shall be liable to penalty;
(XVIII) As per Section 114AA of the Customs Act, 1962, if a person knowingly or
intentionally makes, signs or uses, or causes to be made, signed or used, any
declaration statement or document which is false or incorrect in any material
particular, in transaction of any business for the purposes of this Act, shall
be liable to a penalty;
(XIX) As per Section 118(a) of the Customs Act, 1962, where any goods imported
in a package are liable to confiscation, the package and any other goods
imported in the package shall also be liable to confiscation;
(XX) As per Section 119 of the Customs Act, 1962, any goods used for
concealing smuggled goods shall also be liable to confiscation;

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(XXI) As per provisions of Section 120-Confiscation of smuggled goods
notwithstanding any change in form, etc.-
(1) Smuggled goods may be confiscated notwithstanding any change in their
form;
(2) Where smuggled goods are mixed with other goods in such manner that
the smuggled goods cannot be separated from such other goods,
the whole of the goods shall be liable to confiscation.
(XXII) As per Section 123 of the Customs Act, 1962,
(1) Where any goods to which this section applies are seized under this Act
in the reasonable belief that they are smuggled goods, the burden of
proving that they are not smuggled goods shall be –
(a) In a case where such seizure is made from the possession of any person,
-
(i) On the person from whose possession the goods were seized; and
(ii) if any person, other than the person from whose possession the goods
were seized, claims to be the owner thereof, also on such other person;
(b) In any other case, on the person, if any, who claims to be the owner of
the goods so seized;
(2)This section shall apply to Gold, and manufactures thereof,
watches, and any other class of goods which the Central Government may by
notification in the Official Gazette specify.
(XXIII) As per Section 124 - Issue of Show Cause Notice before confiscation of
goods, etc. - No order confiscating any goods or imposing any penalty on any
person shall be made under this Chapter unless the owner of the goods or
such person–
(a) Is given a notice in writing with the prior approval of the officer of
Customs not below the rank of an Assistant Commissioner of Customs,
informing him of the grounds on which it is proposed to confiscate the goods
or to impose a penalty;

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 (b) Is given an opportunity of making a representation in writing within such
reasonable time as may be specified in the notice against the grounds of
confiscation or imposition of penalty mentioned therein; and
(c) Is given a reasonable opportunity of being heard in the matter:
Provided that the notice referred to in clause (a) and the representation
referred to in clause (b) may, at the request of the person concerned be
oral.
Provided further that notwithstanding issue of notice under this section,
the Proper Officer may issue a supplementary notice under such
circumstances and in such manner as may be prescribed.
(XXIV) As per Section 125 - Option to pay fine in lieu of confiscation. - (1) Whenever
confiscation of any goods is authorised by this Act, the officer adjudging it
may, in the case of any goods, the importation or exportation whereof is
prohibited under this Act or under any other law for the time being in force,
and shall, in the case of any other goods, give to the owner of the goods or
where such owner is not known, the person from whose possession or
custody such goods have been seized, an option to pay in lieu of confiscation
such fine as the said officer thinks fit:
Provided that where the proceedings are deemed to be concluded under
the proviso to sub-section (2) of Section 28 or under clause (i) of sub-
Section (6) of that section in respect of the goods which are not prohibited
or restricted, the provisions of this section shall not apply:
Provided further that without prejudice to the provisions of the proviso to
sub-Section (2) of Section 115, such fine shall not exceed the market price
of the goods confiscated less in the case of imported goods the duty
chargeable thereon.
(2) Where any fine in lieu of confiscation of goods is imposed under sub-
Section (1), the owner of such goods or the person referred to in sub-Section
(1), shall, in addition, be liable to any duty and charges payable in
respect of such goods.

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 (3) Where the fine imposed under sub-Section (1) is not paid within a
period of one hundred and twenty days from the date of option given
thereunder, such option shall become void, unless an appeal against such
order is pending.
(XXV) As per Section 3 of the Foreign Trade (Development & Regulations)
Act, 1992
1) The Central Government may, by Order published in the Official Gazette,
make provision for the development and regulation of foreign trade by
facilitating imports and increasing exports.
2) The Central Government may also, by Order published in the official
Gazette, make provision for prohibiting, restricting or otherwise regulating
in all cases or in specified classes of cases and subject to such
exceptions, if any, as may be made by or under the Order, the import or
export of goods or services and technology.
3) All the goods to which any Order under sub-section (2) applies shall be
deemed to be goods the import or export of which has been prohibited
under Section 11 of the Customs Act, 1962 (52 of 1962) and all the
provisions of that Act shall have effect accordingly.
(XXVI) As per Section 7 in The Foreign Trade (Development and Regulation)
Act, 1992, no person shall make any import or export except under an
Importer-exporter Code Number granted by the Director-General or the officer
authorised by the Director-General in this behalf, in accordance with the
procedure specified in this behalf by the Director-General.
Provided that in case of import or export of services or technology, the
Importer-exporter Code Number shall be necessary only when the service
or technology provider is taking benefits under the foreign trade policy or
is dealing with specified services or specified technologies.
(XXVII) As per Para 2.26 of the Foreign Trade Policy 2015-2020, bona fide
household goods and personal effects may be imported as part of
passenger baggage as per limits, terms and conditions thereof in baggage
rules notified by Ministry of Finance;

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(XXVIII) In terms of Foreign Trade (Development and Regulation) Act, 1992,
no person shall make an import except under an import export code number.
However, clause 3(1)(h) of the Foreign Trade (exemption from application of
rules in certain cases) Order, 1993 (as amended), provides exemption to the
import of any goods by the person as passenger baggage to the extent
permissible under baggage rules. But, import of any goods as passenger
baggage in the baggage rules is regulated by Para 2.26 of the Foreign Trade
Policy which allows a passenger import of only bona fide household goods
and personal effects in his baggage. As such, any imported goods in the
baggage which are not bona fide household goods and personal effects of
the passenger would not qualify as passenger baggage to avail
exemption in terms of the clause 3(1)(h) of the Foreign Trade (exemption from
application of rules in certain cases) Order, 1993 (as amended) and would
constitute “prohibited goods”.
(XXIX) As per Para 2.08 of the Foreign Trade Policy 2015-2020, any goods/
service, the export or import of which is ‘Restricted’ may be exported or
imported only in accordance with an Authorization/ Permission or in
accordance with the Procedures prescribed in a Notification/ Public Notice
issued in this regard.
(XXX) As per Rule 14 of the Foreign Trade (Regulation) Rules, 1993-(1) No
person shall make, sign or use or cause to be made, signed or used any
declaration, statement or document for the purposes of obtaining a licence or
importing any goods knowing or having reason to believe that such
declaration, statement or document is false in any material particular.
(2) No person shall employ any corrupt or fraudulent practice for the
purposes of obtaining any licence or importing or exporting any goods.
(XXXI) As per Entry No. 356 (i) of Notification No. 50/2017-Cus dated 30.06.2017
as amended, Gold bars, other than Tola bars, bearing manufacturer’s or
refiner’s engraved serial number and weight expressed in metric units, and
Gold coins having Gold content not below 99.5%, imported by the eligible
passenger carries a specific rate of duty of as per notification issued in this

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 regard under the provisions of Customs Act, 1962 but subject to relevant
Condition No. 41 (explained as below).
(XXXII) As per Entry No. 356 (ii) of Notification No. 50/2017-Cus dated
30.06.2017as amended, Gold in any form other than in Entry No. 356 (i),
including Tola bars and ornaments, but excluding ornaments studded with
stones or pearls, carries a specific rate of duty of as per notification issued
in this regard under the provisions of Customs Act, 1962 but subject to
relevant Condition No. 41.
Further the relevant Condition No. 41 specifies that:
1. (a) the duty is paid in convertible foreign currency;
(b) the total quantity of Gold under items (i) and (ii) of Sr. No. 356 does not
exceed One Kilogram and the quantity of Silver under Sr. No. 357 does
not exceed Ten Kilograms per “eligible passenger”, and
2. The Gold or Silver is,-
(a) Carried by the eligible passenger at the time of his arrival in India, or
(b) Imported by him within fifteen days of his arrival in India, or
(c) Is taken delivery of from a customs bonded warehouse of the State Bank
of India or the Minerals and Metals Trading Corporation Ltd., subject to the
conditions 1;
Provided such eligible passenger files a declaration in the
prescribed form before the proper officer of customs at the time of his
arrival in India declaring his intention to take delivery of the Gold or
silver from such a customs bonded warehouse and pays the duty
leviable thereon before his clearance from customs.
Explanation - For the purposes of this notification, “eligible
passenger” means a passenger of Indian origin or a passenger
holding a valid passport, issued under the Passports Act,
1967 (15 of 1967), who is coming to India after a period of not less
than six months of stay abroad; and short visits, if any, made by the
eligible passenger during the aforesaid period of six months shall be
ignored if the total duration of stay on such visits does not exceed

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 thirty days and such passenger has not availed of the exemption
under this notification or under the notification being superseded at
any time of such short visits.
(XXXIII) The Board’s instructions issued vide F.No.495/6/97-Cus.VI dated
06.05.1996 and reiterated in letter F.No.495/19/99-Cus.VI dated 11.04.2000
clearly states that the import of goods in commercial quantity would
not be permissible within the scope of the Baggage Rules, even on
payment of duty. It further appears that on account of the above the
passenger terminal cannot be converted into cargo terminal.
(XXXIV) As per Notification No. 31/2016 - Customs (N. T.) dated 01.03.2016, in
Regulation 3 of Customs Baggage Declaration Regulations, 2013, the words
“All passengers who come to India”, were substituted with the words “All
passengers who come to India and have anything to declare or are
carrying dutiable or prohibited goods”. Further, vide the same
notification at serial number 10, after item (ix), the entries relating thereto
"drones" were inserted.
(XXXV) As per Rule (3) of Baggage Rules, 2016 - Passengers arriving from
countries other than Nepal, Bhutan or Myanmar - An Indian resident or
a foreigner residing in India or a tourist of Indian origin, not being an infant,
arriving from any country other than Nepal, Bhutan or Myanmar, shall be
allowed clearance free of duty articles in his bona fide baggage, that is to
say, used personal effects, travel souvenirs and articles other than those
mentioned in Annexure I, upto the value of fifty thousand rupees if these are
carried on the person or in the accompanied baggage of the passenger:
Provided that a tourist of foreign origin, not being an infant, shall be
allowed clearance free of duty articles in his bona fide baggage, that is to
say, used personal effects, travel souvenirs and articles other than those
mentioned in Annexure I, upto the value of fifteen thousand rupees if
these are carried on the person or in the accompanied baggage of the
passenger:

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 Provided further that where the passenger is an infant, only used
personal effects shall be allowed duty free.
Explanation - The free allowance of a passenger under this rule shall
not be allowed to be pooled with the free allowance of any other
passenger.
(XXXVI) Gold, excluding ornaments, is included in Annexure-I and hence excluded
from the Baggage Rules 2016. As such the allowance for Gold is ‘NIL’ and
for Jewellery, it is Rupees One Lakh for Ladies and Rs. Fifty Thousand for
Gentlemen provided they are Indian Citizen returning after One year.

13.27. From the facts and circumstances as discussed above, it appears

that:

i. The Pax namely Mr. Mantu Kumar (DOB: 01.01.2002) holder of Indian Passport
No. V3630121 issued on 17.11.2021 was apprehended by the Customs Officers for
his act of smuggling of Gold weighing 1536.59 grams Rs. 80,39,669/- (Rupees Eighty
Lakhs Thirty Nine Thousand Six Hundred Sixty Nine only) extracted from two pouches
containing gold in chemical paste form weighing 1805 grams approx. which was
recovered from the possession of Mr. Mantu Kumar (DOB: 01.01.2002) on
20.06.20223. Mr. Mantu Kumar admitted in his Statement dated 20.06.2023,
21.06.2023 & 22.06.2023 that he brought and carried imported gold in paste form
weighing 1805 grams in chemical paste form (including packing material) from
Sharjah to New Delhi by Flight No. G9463 (Air Arabia) dated 19.06.2023, arrived at
Delhi on 20.06.2023 and he has to attempt to clear the same from the Customs
Area without paying the Customs Duty through namely Mr. Sunny Chauhan;

ii. The Pax Mr. Mantu Kumar (DOB: 01.01.2002) had full knowledge that he was
required to declare the said gold before the Custom Officer at Red Channel but he
crossed the Green Channel at arrival hall of IGI Airport with intent to avoid
declaration and payment of appropriate customs duty who was intercepted by the
Customs officer after he crossed the green channel near exit gate and thus the Pax
preferred to walk through the Green Channel without making any true and correct
declaration before the Customs Officer at the Green Channel. From the Customs
Proceedings, it appears that the Pax namely Mr. Mantu Kumar (DOB: 01.01.2002)
adopted a modus operandi to evade payment of customs duty on imported gold in
association with Mr. Sunny Chauhan and Mr. Kabir Siddiqui to whom the
imported Gold in chemical paste form was supposed to handover outside the Airport

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on exit of Mr. Sunny Chauhan and Pax Mr. Mantu Kumar. Thus the Pax Mr. Mantu
Kumar in association with Mr. Sunny Chauhan and Mr. Kabir Siddiqui have
violated the provisions of Section 77 of the Customs Act, 1962;

iii. The Pax namely Mr. Mantu Kumar was an ineligible passenger to import Gold
in terms of Notification No. 50/2017-Cus dated 30.06.2017 (as amended) read with
Baggage Rules, 2016 and also as per the provisions of Foreign Trade (Development
and Regulation) Act, 1992, Foreign Trade (exemption from application of rules in
certain cases) Order, 1993 (as amended), and Foreign Trade Policy 2015-20 as it
was ingenious concealment; the pax had not declared the gold to the proper officer
of Customs;

iv. The Pax Mr. Mantu Kumar has to attempt in association with Mr. Sunny
Chauhan and beneficial owner Mr. Kabir Siddiqui to smuggle the seized goods viz.
Gold weighing 1536.59 grams extracted from two pouches containing gold in
chemical paste form total weighing 1805 grams approx. with an intention to evade
Customs Duty by avoiding the proper channel of Customs clearance and not
declaring anything in respect of the seized items, which was a non bona fide
baggage;

v. Mr. Sunny Chauhan vide his statement dated 20.06.23, 21.06.23 &
22.06.23 and beneficial owner Mr. Kabir Siddiqui in his Statement dated 21.06.23
& 22.06.23 admitted that they had played an active role in smuggling of total of 4536.59
grams having total Tariff value of Rs. 2,36,34,469/- in the past and attempted smuggling of
aforementioned gold paste in the morning of 20.06.2023.

i. The Pax in association with the beneficial owner namely Mr. Manoj
Manglani attempted to smuggle the seized goods by concealing the same
on her body as the same were worn by the Pax and also with an intention
to evade Customs Duty by avoiding the proper channel of Customs
clearance and not declaring anything in respect of the seized items, which
were non bona fide baggage and commercial in nature and were not for her
personal use;
ii. As per Section 2(3A) of Customs Act, 1962, “beneficial owner” means any
person on whose behalf the goods are being imported or exported or who
exercises effective control over the goods being imported or exported. In the
instant case, Mr. Manoj Manglani appears beneficial owner of the
goods, as admitted & stated by the Pax in her statements dated 05.09.2023

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 & 17.05.2023 and also appears to be the “beneficial owner”, as per
Section 2(3A) of the Customs Act, 1962 for the goods attempted to be
smuggled from the Customs Area by the Pax by concealing the same on her
body as the same were worn by the Pax, for further delivery to an unknown
person in India as instructed by the Owner and that unknown person would
have received the benefits of sale proceeds of smuggled goods;

vii. In terms of provisions of Section 7 of Foreign Trade (Development and

Regulation) Act, 1992, no person shall make an import except under an Import
Export Code Number. However, clause 3(1)(h) of the Foreign Trade (Exemption from
application of rules in certain cases) Order, 1993 provides exemption to the import
of any goods by the person as Passenger Baggage to the extent permissible under
Baggage Rules. But, import of any goods as Passenger Baggage in the Baggage Rules
is regulated by Para 2.26 of the Foreign Trade Policy which allows a passenger
import of only bona fide household goods and personal effects in his baggage. As
such, any imported goods in the baggage which are not bona fide household goods
and personal effects of the passenger, would not qualify as Passenger Baggage to
avail exemption in terms of the clause 3(1)(h) of the Foreign Trade (Exemption from
application of rules in certain cases) Order, 1993 and would constitute Prohibited
Goods in terms of the above-mentioned provisions of the Foreign Trade
(Development and Regulation) Act, 1992. In terms of Section 2(33) of the Customs
Act, 1962, Prohibited Goods" means any goods the import or export of which is
subject to any prohibition under this Act or any other Law in force for the time
being. Therefore, the said goods attempted to be cleared from the Customs Area by
the Pax without declaration and attempted to smuggle for monetary gain in the
instant case were not for his personal use. Therefore, the seized goods i.e. 350
Grams Gold does not appear to be bona fide household goods and personal effects
and as such could not be treated as 'Passenger Baggage to avail exemption in terms
of the clause 3(1)(h) of the Foreign Trade (Exemption from application of rules in
certain cases) Order, 1993. The same would appropriately constitute 'Prohibited
Goods' liable to confiscation under Section 111 of Customs Act, 1962.

viii. Thus, the Pax(s) namely Mr. Mohammed Sharik and Mohammad Khan
Ahmad in association with other beneficiaries/noticee(s) namely Mr. Manoj
Kumar Jilowa (Receiver-1), Mr. Ramjan Khan (Receiver-2), Mr. Khushi Khan,

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Mr. Mohsin have contravened the provisions of Section 11A, 77 & 79 of the
Customs Act, 1962 read with Baggage Rules, 2016 (as amended), Customs
Notification 50/2017 dated 30.06.2017 (as amended) and Para 2.08 & 2.26 of the
Foreign Trade Policy 2015-20 issued under Section 5 of the Foreign Trade
(Development and Regulation) Act, 1992.

ix. The aforesaid Pax(s) were not eligible to 'Free Allowance’ as admissible under
Baggage rules 2016 (as amended) on account of the various acts of omission and
commission as discussed, herein, supra.

x. In terms of Section 123 of the Customs Act, 1962, Gold is notified goods
under the act, ibid and onus of proof that the goods were not prohibited smuggled
goods lies on the person from whom the Gold were recovered, but the Pax, failed to
do so. Section 123(2) - This section shall apply to Gold, and manufactures thereof
watches, and any other class of goods which the Central Government may by
notification in the Official Gazette specify.

x. It appeared that the Pax(s) Mr. Mohammed Sharik and Mohammad Khan in
association with Mr. Manoj Kumar Jilowa (Receiver-1), Mr. Ramjan Khan
(Receiver-2), Mr. Khushi Khan and Mr. Mohsin had attempted to smuggle the
seized Gold by non-declaration of the same and attempted to clear the same without
payment of Customs Duty. Thus, it appears that the Pax(s) Mr. Mohammed Sharik
and Mohammad Khan in association with Mr. Manoj Kumar Jilowa (Receiver-1), Mr.
Ramjan Khan (Receiver-2), Mr. Khushi Khan and Mr. Mohsin had contravened the
provisions of Section 77 of the Customs Act, 1962 read with Rule 3 of the Baggage
Rules, 2016, ITC-HS classification on import items read with saving clause 3(1)(h) of
the Foreign Trade (exemption from application of Rules in certain cases) Order, 1993
dated 31.12.1993, Rule 11 and 14 of the Foreign Trade (Regulation) Rules, 1993
read with Para 2.26 of the Foreign Trade Policy, 2015-20, thereby rendering the
seized goods i.e. (1) 01 rectangular shaped Gold Bar weighing 1142.15 grams
valued Rs.61,35,058/- (Rupees Sixty One Lakh Thirty Five Thousand and Fifty
Eight only) extracted from the gold paste imported by Mr. Mohammad Sharik
and further attempted to clear the same in concealed manner through Mr. Manoj
Kumar Jilowa (Receiver-1) and (2) 01 rectangular shaped Gold Bar weighing
302.49 grams valued Rs.16,24,825/- (Rupees Sixteen Lakh Twenty Four
Thousand Eight Hundred Twenty Five only) extracted from the gold paste
imported by Mohammad Khan Ahmad in concealed manner kept in one oval
shaped capsules and handed over the same to Mr. Ramjan Khan on exit of the Delhi
Airport and thus they have attempted to clear the dutiable goods without
declaration of the same to the Customs officer and thus the seized gold
collectively weighing 1444.64 grams valued Rs.77,59,883/- (Rupees Seventy

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Seven Lakh Fifty Nine Thousand Eight Hundred and Eighty Three only), liable for
confiscation under Section 111(d), 111(i), 111(j), 111(l), 111(m) & 111(o) of the
Customs Act, 1962 and the Pax (s) namely Mr. Mohammed Sharik and
Mohammad Khan Ahmad and the beneficiaries namely Mr. Manoj Kumar
Jilowa (Receiver-1), Mr. Ramjan Khan (Receiver-2), Mr. Khushi Khan (Handler)
and Mr. Mohsin (Handler), made themselves liable for penalty under Section
112(a), Section 112(b) and Section 114AA of the Customs Act, 1962.

28. Therefore, (1) Mr. Mohammed Sharik (Pax) (2) Mohammad Khan Ahmad
(Pax) and the beneficial owners viz. (3) Mr. Manoj Kumar Jilowa (Receiver-1),
(4) Mr. Ramjan Khan (Receiver-2), (5) Mr. Khushi Khan (Handler) and (6) Mr.
Mohsin (Handler) hereby called upon to show cause as to why:

i. 'Free Allowance' as admissible under Baggage Rules, 2016 (as amended)

should not be denied to him as he deliberately, knowingly and intentionally did not
declare the recovered & seized Gold at Red Channel before the Proper Officer of
Customs;

ii. The seized goods i.e. 01 (one) rectangular shaped Gold Bar weighing 1142.15
grams valued Rs.61,35,058/- (Rupees Sixty One Lakh Thirty Five Thousand
and Fifty Eight only) extracted from one pouch containing gold in paste form
weighing 1337 grams approx, which was brought and imported by Mr.
Mohammad Sharik and recovered from the possession of Mr. Manoj Kumar
Jilowa and seized under Panchnama dated 21.04.2023, should not be confiscated
under Section 111(d), 111(i), 111(j), 111(l) and 111(m) of the Customs Act, 1962;

iii. The seized goods i.e. 01 (one) rectangular shaped Gold Bar weighing
302.49 grams valued Rs.16,24,825/- (Rupees Sixteen Lakh Twenty Four
Thousand Eight Hundred Twenty Five only) extracted from one oval shaped
capsules containing gold in paste form weighing 349 grams approx, which was
brought and imported by Mohammad Khan Ahmad and recovered from the
possession of Mr. Ramjan Khan and seized under Panchnama dated 21.04.2023,
should not be confiscated under Section 111(d), 111(i), 111(j), 111(l) and 111(m) of
the Customs Act, 1962;

iv. Penalty should not be upon them under Section 112(a), 112(b) and 114AA of
the Customs Act, 1962 for smuggling of seized goods i.e. (1) 01 (one) rectangular
shaped Gold Bar weighing 1142.15 grams valued Rs.61,35,058/- (Rupees Sixty
One Lakh Thirty Five Thousand and Fifty Eight only) and (2) 01 (one)
rectangular shaped Gold Bar weighing 302.49 grams valued Rs.16,24,825/-
(Rupees Sixteen Lakh Twenty Four Thousand Eight Hundred Twenty Five only)

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as per para ii and iii above for their various acts of omission and commission, as
brought out in the body of Show Cause Notice.

29. Therefore, (1) Mr. Mohammed Sharik (Pax) (2) Mohammad Khan Ahmad
(Pax) and the beneficial owners viz. (3) Mr. Manoj Kumar Jilowa (Receiver-1),
(4) Mr. Ramjan Khan (Receiver-2), (5) Mr. Khushi Khan (Handler) and (6) Mr.
Mohsin (Handler) are required to submit their written reply to this Show Cause
Notice within 30 days of its receipt or within such extended period as Adjudicating
Authority may, on sufficient cause being shown, allow. They are required to submit
along with their reply to this Notice all evidence, documentary or otherwise, if any,
on which they intend to rely upon in their defence.

30. They are required to note that in case the written reply to this Notice is not
received within the time stipulated above and they or their Authorized Legal
Representative fail to attend the Personal Hearing at the date and time fixed, the
case may be decided ex-parte on the basis of evidence already available on record
without any further reference.

31. This Show Cause Notice is being issued as per the investigations conducted so
far. Hence, the department reserves its rights under the provisions of the Customs
Act, 1962 to conduct further investigations and issue subsequent or separate Show
Cause Notice(s), if any.

32. The Show Cause Notice is being issued under Section 124 of the Customs Act,
1962 without prejudice to any other action that may be taken against them whether
mentioned herein above or not under the Customs Act, 1962 or any other law for
the time being in force.

32. A copy each of the relied upon documents is enclosed as per Annexure “I” to
this Show Cause Notice.

(Monika Yadav)
Joint Commissioner of Customs
IGI Airport, Terminal-3, New Delhi.

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 From the facts and circumstances as discussed above, it appears that:
iii. The Pax namely Ms. Neelam Kanwarchandani (D.O.B.-30.09.1996) was
apprehended by the Customs Officers for her involvement in the act of
smuggling of Gold totally weighing 262 Grams Gold valued at Rs.
13,82,893/- (Rupees Thirteen Lakh Eighty Two Thousand Eight
Hundred and Ninety Three Only). The Pax had full knowledge that she
was carrying goods in Commercial Quantity and she was required to
declare the same before the Customs Officer at Red Channel but she
attempted to clear the seized goods without making true and correct
declaration before the Customs Officer at the Red Channel.
iv. The Pax was an ineligible passenger to import Gold in terms of Notification
No. 50/2017-Cus dated 30.06.2017 (as amended) read with Baggage
Rules, 2016 and also as per the provisions of Foreign Trade (Development
and Regulation) Act, 1992, Foreign Trade (exemption from application of
rules in certain cases) Rules, 1993 (as amended), and Foreign Trade Policy
2015-20;
v. The Pax in association with the beneficial owner namely Mr. Manoj
Manglani attempted to smuggle the seized goods by concealing the same
on her body as the same were worn by the Pax and also with an intention
to evade Customs Duty by avoiding the proper channel of Customs
clearance and not declaring anything in respect of the seized items, which
were non bona fide baggage and commercial in nature and were not for her
personal use;
vi. As per Section 2(3A) of Customs Act, 1962, “beneficial owner” means any
person on whose behalf the goods are being imported or exported or who
exercises effective control over the goods being imported or exported. In the
instant case, Mr. Manoj Manglani appears beneficial owner of the
goods, as admitted & stated by the Pax in her statements dated 05.09.2023
& 17.05.2023 and also appears to be the “beneficial owner”, as per
Section 2(3A) of the Customs Act, 1962 for the goods attempted to be

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 smuggled from the Customs Area by the Pax by concealing the same on her
body as the same were worn by the Pax, for further delivery to an unknown
person in India as instructed by the Owner and that unknown person would
have received the benefits of sale proceeds of smuggled goods;
vii. In terms of provisions of Section 7 of Foreign Trade (Development and
Regulation) Act, 1992, no person shall make an import except under an
Import Export Code Number. However, clause 3(1)(h) of the Foreign Trade
(Exemption from application of rules in certain cases) Order, 1993 provides
exemption to the import of any goods by the person as Passenger Baggage
to the extent permissible under Baggage Rules. But, import of any goods as
Passenger Baggage in the Baggage Rules is regulated by Para 2.26 of the
Foreign Trade Policy which allows a passenger import of only bona fide
household goods and personal effects in his baggage. As such, any
imported goods in the baggage which are not bona fide household goods
and personal effects of the passenger, would not qualify as Passenger
Baggage to avail exemption in terms of the clause 3(1)(h) of the Foreign
Trade (Exemption from application of rules in certain cases) Order, 1993
and would constitute Prohibited Goods in terms of the above mentioned
provisions of the Foreign Trade (Development and Regulation) Act, 1992. In
terms of Section 2(33) of the Customs Act, 1962, ‘Prohibited Goods’ means
any goods the import or export of which is subject to any prohibition under
this Act or any other Law in force for the time being. Therefore, it appears
that the Pax attempted to clear the aforementioned recovered gold articles
from the Customs Area by way of wearing on her body in concealed
manner and without declaration of the recovered gold articles to the
Customs officer. Thus it evident that she attempted to smuggled the
recovered Gold articles in large quantity for monetary gain in the instant
case as the same were not for her personal uses. Therefore, the seized good
does not appear to be bona fide household goods and personal effects and
as such could not be treated as ‘Passenger Baggage’ to avail exemption in
terms of the clause 3(1)(h) of the Foreign Trade (Exemption from

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 application of rules in certain cases) Order, 1993. The same would
appropriately be categorized as ‘Prohibited Goods’ liable to confiscation
under Section 111 of the Customs Act, 1962.
viii. Thus, the Pax contravened the provisions of Section 11A, 77 & 79 of the
Customs Act, 1962 read with Baggage Rules, 2016 (as amended), Customs
Notification 50/2017 dated 30.06.2017 (as amended) and Para 2.08 & 2.26
of the Foreign Trade Policy 2015-20 issued under Section 5 of the Foreign
Trade (Development and Regulation) Act, 1992.
ix. The Pax was not eligible for ‘Free Allowance’ as admissible under Baggage
Rules, 2016 (as amended) on account of the various acts of omission and
commission as discussed, herein, supra.
x. In terms of Section 123 of the Customs Act, 1962, Gold is notified goods
under the act, ibid and onus of proof that the goods were not smuggled
goods lies on the person from whom the Gold were recovered, but the Pax
namely Ms. Neelam Kanwarchandani (D.O.B.-30.09.1996) as well as the
beneficial owner namely Mr. Manoj Manglani, who had handed over
the same to the Pax in Dubai have failed to do so.
Section 123(2) - This section shall apply to Gold, and manufactures
thereof, watches, and any other class of goods which the Central
Government may by notification in the Official Gazette specify.
ix. It appears that the Pax namely Ms. Neelam Kanwarchandani (D.O.B.-
30.09.1996) in association with the beneficial owner namely Mr. Manoj
Manglani had attempted to smuggle the seized Gold by non-declaration of
the same before the Customs Red Channel and attempted to clear the same
without payment of Customs Duty. Thus, it appears that the Pax had
contravened the provisions of Section 77 of the Customs Act, 1962 read
with Rule 3 of the Baggage Rules, 2016, ITC-HS classification on import
items read with saving clause 3(1)(h) of the Foreign Trade (exemption from
application of Rules in certain cases) Order, 1993 dated 31.12.1993, Rule
11 and 14 of the Foreign Trade (Regulation) Rules, 1993 read with Para
2.26 of the Foreign Trade Policy, 2015-20, thereby rendered the seized

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 goods i.e. weighing 262 Grams Gold valued at 13,82,893/- (Rupees
Thirteen Lakh Eighty Two Thousand Eight Hundred and Ninety Three
Only), liable for confiscation under Section 111(d), 111(i), 111(j),
111(l), 111(m) of the Customs Act, 1962 and the Pax Ms. Neelam
Kanwarchandani and the beneficial owner namely Mr. Manoj Manglani,
made themselves liable for penalty under Section 112(a), Section
112(b) and Section 114AA of the Customs Act, 1962.

14. Now therefore, the (1) Pax namely Ms. Neelam Kanwarchandani (D.O.B.-
30.09.1996) D/o Mr. Kishore Kumar Kanwarchandani, R/o 1069, Dudhiya Mohalla,
Nasirabad, Ajmer, PIN: 305601, Rajasthan, India, holder of Indian Passport no.
P2871081 issued on 10.06.2016 and (2) Mr. Manoj Manglani, R/o Ajay Nagar,
Ajmer (said to be beneficial owner) are hereby called upon, jointly & severally, to
show cause to the Joint/Additional Commissioner of Customs, T-3, IGI Airport, New
Delhi within 30 days of receipt of this notice as to why:

i. ‘Free Allowance’ as admissible under Baggage Rules, 2016 (as

amended) should not be denied to him as he deliberately,
knowingly and intentionally did not declare the recovered & seized
Gold at Red Channel before the Proper Officer of Customs;
ii. The seized Gold i.e. 262 Grams Gold valued at 13,82,893/-
(Rupees Thirteen Lakh Eighty Two Thousand Eight Hundred
and Ninety Three Only) recovered from the Pax and seized under
Panchnama dated 09.05.2023, should not be confiscated under
Section 111(d), 111(i), 111(j), 111(l), 111(m) of the Customs Act,
1962;
iii. Penalty should not be imposed upon them under Section 112(a),
112(b) and 114 AA of the Customs Act, 1962 for smuggling of
seized goods i.e. 262 Grams Gold valued at 13,82,893/- (Rupees
Thirteen Lakh Eighty Two Thousand Eight Hundred and

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 Ninety Three Only) as mentioned in para ii above and for their
various acts of omission and commission.

15. The Pax namely Ms. Neelam Kanwarchandani (D.O.B.-30.09.1996) and the
beneficial owner Mr. Manoj Manglani are required to submit their written reply to
this Show Cause Notice within 30 days of its receipt or within such extended period
as respective Adjudicating Authority may, on sufficient cause being shown, allow.
They are required to submit along with their reply to this Notice all evidence,
documentary or otherwise, if any, on which they intend to rely upon in their defense.

16. They are required to note that in case the written reply to this Notice is not
received within the time stipulated above and they or their Authorized Legal
Representative fails to attend the Personal Hearing at the date and time fixed, the
case may be decided ex-parte on the basis of evidence already available on record
without any further reference.

17. This Show Cause Notice is being issued as per the investigations conducted so
far. Hence, the department reserves its rights under the provisions of Customs Act,
1962 to conduct further investigations and issue subsequent or separate Show
Cause Notice(s), if any.

18. This Show Cause Notice is being issued under Section 124 of the Customs
Act, 1962 without prejudice to any other action that may be taken against them or
any other person(s) whether mentioned herein above or not under the Customs Act,
1962 or any other law for the time being in force.

19. A copy each of the Relied upon Documents (RUDs) is enclosed as per
Annexure -1 to this Show Cause Notice.

(Monika Yadav)
Joint Commissioner of Customs
IGI Airport, Terminal-3, New Delhi.

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By Speed Post/ Registered Post (AD)/ Email:

1. Ms. Neelam Kanwarchandani (D.O.B.-30.09.1996)

D/o Mr. Kishore Kumar Kanwarchandani,
R/o 1069, Dudhiya Mohalla, Nasirabad,
Ajmer, PIN: 305601, Rajasthan, India
(Holder of Indian Passport No. P2871081)

2.Mr. Manoj Manglani, R/o Ajay Nagar, Ajmer

Through Notice Board,
O/o Commissioner of Customs, Terminal-3, IGI Airport, New Delhi-37

Copy forwarded to:

1. The Central Economic Intelligence Bureau, Janpath Bhawan, 6 th Floor B-wing,
Janpath, New Delhi-110001;
2. The Air Customs Superintendent (Adj.), IGI Airport, T- 3, New Delhi
3. PRO (Gen), IGI Airport, T-3, Delhi to make necessary entry in records and
display on the Notice Board at IGI Airport.

Air Customs Superintendent

Preventive, Shift-A

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 ANNEXURE-I
LIST OF RELIED UPON DOCUEMNTS OF SHOW CAUSE NOTICE

RUD No. of
Description of RUD
No. Pages
Copy of Notice under Section 102 of the Customs
RUD-1 Act. 1962 issued to the Pax Ms. Neelam 2
Kanwarchandani dated 09.05.2023
RUD-2 Copy of Appraisement Report dated 09.05.2023 1
RUD-3 Copy of Panchnama dated 09.05.2023 5
Copy of Statement of Ms. Neelam
RUD-4 5
Kanwarchandani dated 09.05.2023
Copy of Statement of Ms. Neelam
RUD-5 3
Kanwarchandani dated 17.05.2023
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 Page PAGE 7
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