In short. If customs at IGI Airport has detained your gold, jewellery, phones or cash, or the DRI has seized an importer's goods or summoned you under Section 108, you have three tracks to manage: getting the goods back (provisional release, or return if no show cause notice is issued within six months), defending the adjudication, and, if there is arrest or prosecution, bail. Airport cases are often decided in weeks to months; DRI investigations take longer. Do not sign any waiver or statement in a hurry. Collect the detention receipt and seizure papers first.
Is this your situation?
- Customs at IGI Airport detained your gold jewellery, watches, phones or foreign currency.
- You were asked to sign a pre-printed form giving up your right to a show cause notice.
- A family member was arrested at the airport for carrying gold or undeclared goods.
- The DRI has summoned you under Section 108 or searched your office or warehouse.
- Your imported consignment is held at ICD Tughlakabad, Patparganj or the air cargo complex.
- You received a show cause notice proposing confiscation, duty and penalty.
- Months have passed since the seizure and no notice or order has come.
Three tracks run at the same time
A customs case is really three cases running side by side. The first is about the goods: whether they are held, released provisionally, confiscated, or returned. The second is the adjudication: a show cause notice, a reply, a personal hearing and an order on confiscation, duty, redemption fine and penalty, with appeals up to the Commissioner (Appeals), the CESTAT and the High Court. The third is criminal: arrest under Section 104, bail, and prosecution under Sections 132 and 135 before a magistrate.
Most airport cases involve only the first two. A passenger whose jewellery is detained is rarely arrested unless the value is high or the goods were concealed. Larger smuggling cases and commercial frauds, such as undervaluation of imports or misuse of export incentives, usually involve all three, and sometimes preventive detention under COFEPOSA as well.
What you say and sign at the very start affects all three tracks. A statement under Section 108 admitting that you knew the gold was being smuggled will be used in the adjudication and in the prosecution. A waiver of the show cause notice, signed at the counter to get out of the airport, can make it harder to argue later that the goods should have been returned for want of notice.
When Advocate B.K. Singh first speaks to a family after an airport arrest, he separates the questions by urgency. Bail comes first, because liberty is at stake and the first production before the magistrate happens within twenty-four hours. Retraction of any statement comes next, because it loses value with every day of delay. The goods and the adjudication can wait a few weeks without harm, provided the six-month date is written down.
At the airport: detention, seizure and what to ask for
Under the Baggage Rules 2026, in force from 2 February 2026, passengers arriving by air get a general duty-free allowance (Rs 75,000 for residents and tourists of Indian origin), and residents returning after more than a year abroad may bring gold jewellery up to 20 grams (men) or 40 grams (women) free of duty, now judged by weight rather than value. Anything beyond the allowance must be declared at the red channel and duty paid. Check the current rules before travel, because allowances and conditions change.
When an officer stops you in the green channel, three things can happen. The goods may be assessed to duty, which you pay on the spot. They may be detained, either at your request for re-export when you leave (Section 80) or because the officer is not satisfied, in which case you should get a detention receipt listing each item. Or they may be seized under Section 110, with a seizure memo (panchnama) prepared in front of witnesses.
Ask for, and keep, the detention receipt or seizure memo, the baggage receipt, and a copy of any statement you sign. Read every page before signing; if a form says you waive a show cause notice and a personal hearing, you are not obliged to sign it to leave the airport. The Delhi High Court has in a number of cases criticised the practice of obtaining such waivers on pre-printed forms, and has looked closely at whether a passenger truly gave up the right to be heard. Our guide on what happens when customs detains you at Delhi airport walks through the counter-level process.
The provisions that matter
Sections 108 and 104, Customs Act 1962
Section 108 lets a gazetted customs officer summon any person to give evidence or produce documents. Statements recorded under it can be used as evidence, because customs officers are not police officers. Section 104 allows arrest where the officer has reason to believe a person committed certain offences; the more serious categories (prohibited goods, evasion of duty above Rs 50 lakh, undeclared goods worth more than Rs 1 crore and similar cases) are non-bailable, and others are bailable, with the officer able to grant bail.
Sections 110 and 110A
Section 110 allows seizure of goods liable to confiscation. If no show cause notice is issued within six months of seizure (extendable by up to six more months by a senior officer, for reasons), the goods must be returned to the person from whom they were seized. Section 110A allows provisional release of seized goods, documents or things pending adjudication, on a bond and security.
Sections 111, 112, 113 and 114
Section 111 lists improperly imported goods liable to confiscation (undeclared, concealed, misdeclared, prohibited); Section 113 does the same for exports. Sections 112 and 114 impose penalties on persons whose acts or omissions made the goods liable to confiscation.
Sections 124 and 125
Section 124 bars confiscation or penalty without a written show cause notice, an opportunity to reply and a hearing (the notice can be oral if the person asks in writing). Section 125 lets the officer give the owner the option to pay a fine in lieu of confiscation: for goods that are not prohibited this option must be offered, and for prohibited goods it is discretionary.
Sections 132, 135 and 137
Criminal prosecution for false declarations and for evasion of duty or dealing with prohibited goods, with heavier punishment for higher values. Prosecution needs sanction of the Principal Commissioner or Commissioner under Section 137, which also permits compounding of offences in many cases.
Gold and jewellery: the most common airport case
Gold cases at IGI fall into two very different groups. In the first, a passenger is wearing or carrying jewellery that is personal and often old, and the dispute is about whether it falls within the allowance, whether it was declared, and whether it is really for personal use. In the second, gold is concealed (in a body cavity, in a paste form in clothing, in machinery or electronic items), and the case is treated as smuggling.
For personal jewellery, the answer usually lies in documents: photographs of the passenger wearing it at earlier family events, purchase bills, an export certificate if it was taken out of India earlier, and proof of residence abroad. Where the jewellery was detained only for want of declaration and there is no concealment, release on payment of duty, or re-export, is often possible, and courts have ordered return where no show cause notice was issued within time.
For concealed gold, the officer will usually treat the goods as prohibited, because import in breach of the conditions attached to gold is treated as import of prohibited goods. Redemption is then discretionary, not automatic. The Delhi High Court has held that the adjudicating authority does have discretion to allow redemption of such goods on payment of a fine, but must exercise it reasonably, with reasons, and taking into account factors such as concealment, repeated offending and whether the passenger is a carrier for others. Our guide on what happens if gold is seized at Delhi airport sets out the usual sequence.
Carriers form a large share of the people arrested at IGI with concealed gold: travellers, often on short trips to the Gulf, who agree to bring a packet in return for a ticket or a small payment. Customs treats them as liable for penalty and prosecution even if the gold belongs to someone else. Their bail usually depends on the value, whether it is a first offence, and whether they have cooperated in identifying the person who sent the gold. Foreign nationals face an extra difficulty, since courts worry that they will leave India; a local surety and surrender of the passport are common conditions.
Phones, electronics, foreign currency and other goods
Electronic items in commercial quantities, such as several new phones or laptops still in their boxes, are generally not treated as baggage, and duty or confiscation follows. Personal laptops and phones in use are not usually a problem. Drones, satellite phones and some communication equipment need separate permission and are often detained for that reason.
Foreign currency must be declared on arrival on a Currency Declaration Form where foreign currency notes exceed USD 5,000, or currency and travellers' cheques together exceed USD 10,000 or its equivalent, under the Foreign Exchange Management regulations. Indian currency beyond the permitted limit for residents (Rs 25,000 at the time of writing) can also be seized. Check the current limits before you travel. Currency seized at departure on suspicion of being unaccounted or illegally exported often leads to both customs action and a reference to the ED or income tax department.
Watches, branded goods and cosmetics in large numbers usually point to commercial import. If you are bringing items as gifts for a family function, keep the quantity sensible, declare them, and pay the duty; that is almost always cheaper than litigation over confiscation and penalty.
DRI and commercial cases: importers and exporters
The Directorate of Revenue Intelligence (DRI) investigates larger customs frauds: undervaluation of imports, misdeclaration of goods to claim a lower rate, misuse of exemption notifications or free trade agreement benefits, smuggling of gold and narcotics, and fraudulent export incentives. Its officers act as proper officers under the Customs Act; the Supreme Court in 2024, on review of its earlier Canon India ruling, upheld the DRI's power to issue show cause notices for recovery of duty.
A DRI case usually starts with a search of the importer's premises and warehouse, seizure of documents and devices, and Section 108 summons to the proprietor or directors, the customs broker and employees. The goods may be held at ICD Tughlakabad, ICD Patparganj, the air cargo complex at IGI or a port. Provisional release under Section 110A, on a bond for the value and security (bank guarantee or cash) as a percentage of the duty and possible fine, is the usual way to keep the business running while the case continues.
When Advocate B.K. Singh is shown a DRI file, the first thing he looks for is the date of seizure and whether a show cause notice has been issued, because Section 110(2) puts the department on a clock. The second is the Section 108 statements, and whether anything said there was retracted at the first opportunity. Those two points shape almost every DRI case that reaches the Delhi High Court.
Section 108 statements and arrest under Section 104
A Section 108 summons is a legal obligation; ignoring it can lead to prosecution. But appearing does not mean you must sign whatever is typed for you. Read the statement before signing, correct errors in your own hand, and ask for a copy. Courts have accepted that a statement made under pressure can be retracted, but the retraction is only taken seriously if it is made at the earliest opportunity, usually when you are first produced before the magistrate or in a letter within a few days.
Arrest under Section 104 must be for an offence the Act makes arrestable, and the officer must have reasons to believe, based on material, that the person committed it. The arrested person must be told the grounds of arrest and produced before a magistrate without delay. The Supreme Court in Radhika Agarwal v. Union of India (2025) held that the safeguards of the criminal procedure code apply to arrests by customs and GST officers, and that a person apprehending arrest can seek anticipatory bail even before a complaint is filed. See our page on anticipatory bail in the Delhi High Court.
For bailable cases, the customs officer can grant bail at the office. For non-bailable cases, the arrested person is produced before the magistrate; in Delhi, airport and DRI matters are generally taken to the courts at Patiala House. Our page on Patiala House courts explains that complex. After the magistrate, bail can be sought from the Sessions Court and then the Delhi High Court. Where the case involves narcotics found at the airport, it falls under the NDPS Act instead; see NDPS bail in the Delhi High Court.
Steps after a seizure or detention
Collect the papers
Get the detention receipt or seizure memo, any statement you signed, and your travel or import documents. Note the name and designation of the officer and the date.
Write to the department
Within a few days, write to the Assistant or Deputy Commissioner concerned asking for release on payment of duty, re-export, or provisional release, and stating that you do not waive a show cause notice or a hearing. Retract any statement made under pressure.
Track the six-month clock
Count six months from the date of seizure. If no show cause notice or extension order arrives, apply in writing for return of the goods under Section 110(2), and keep proof of the request.
Reply to the show cause notice
When the notice comes, ask for all relied-upon documents, file a detailed written reply with supporting papers, and attend the personal hearing. Ask for cross-examination of witnesses whose statements are relied on, where the case turns on them.
Appeal the order
Against the adjudication order, appeal to the Commissioner (Appeals) under Section 128 within sixty days, with a pre-deposit of 7.5 per cent of the duty or penalty in dispute. A further appeal lies to the CESTAT.
Go to the High Court where needed
File a writ petition in the Delhi High Court where goods are held beyond the statutory period, provisional release is refused unreasonably, a hearing is denied, or an arrest was illegal. Bail applications go to the High Court after the Sessions Court.
Which forum hears what
Customs at IGI Airport and at the Delhi ICDs is administered by the customs commissionerates in Delhi, and adjudication is done by officers of different ranks depending on the value involved. Appeals against an adjudication order go to the Commissioner of Customs (Appeals), then to the CESTAT's Principal Bench in New Delhi. The High Court hears an appeal from the CESTAT on a substantial question of law under Section 130, except in classification and valuation disputes, which go to the Supreme Court; our page on appeals from CESTAT covers that stage.
The Delhi High Court's writ jurisdiction under Article 226 is used for the problems the statutory route does not answer quickly: goods held after six months without a notice, refusal to decide a request for provisional release, adjudication without a hearing, refusal to supply relied-upon documents, illegal arrest, and Look Out Circulars opened at the instance of the DRI. Where an alternative appeal is available and the case is only about the merits of the order, the court usually sends the person back to that remedy. See our page on writ petitions in the Delhi High Court.
A passenger stopped at Mumbai or Hyderabad, or goods held at a port in Gujarat, will normally have to go to the High Court of that state. A person living in Delhi is not entitled to file in Delhi simply because of residence, unless part of the cause of action arose here, for example because the DRI's Delhi unit issued the notice or conducted the search.
Time and cost at each stage
| Stage | Typical time | Court fee, duty and costs |
|---|---|---|
| Detention at airport and request for release | Same day to a few weeks | Duty, fine and penalty as assessed; no court fee |
| Provisional release under Section 110A | Weeks to a few months | Bond for value and security as ordered; no court fee |
| Show cause notice | Within six months of seizure (extendable by six months) | None |
| Adjudication order | Months to a year or more after the notice | Duty, redemption fine and penalty if confirmed |
| Commissioner (Appeals) | Appeal within 60 days; decision often within months | Pre-deposit of 7.5 per cent of duty or penalty in dispute |
| Bail in Sessions Court or Delhi High Court | Days to a few weeks | Nominal court fee; check the current court fee |
| Writ petition in Delhi High Court | First hearing in days to weeks; disposal often in 1 to 6 months | Nominal court fee; check the current court fee |
Documents to gather
Airport passengers
- Passport, boarding pass and baggage tags
- Detention receipt or seizure memo, and any statement signed
- Purchase bills or valuation certificates for jewellery
- Old photographs showing you wearing the jewellery
- Export certificate if the jewellery was taken abroad earlier
- Proof of residence or work abroad and length of stay
- Currency purchase receipts or bank encashment certificates
Importers and exporters
- Bill of entry or shipping bill, invoice, packing list and bill of lading or airway bill
- Contract, purchase order and payment records with the supplier
- Certificate of origin and any exemption or FTA claim papers
- Customs broker's correspondence
- Seizure memo, panchnama and copies of Section 108 statements
- Show cause notice and relied-upon documents
A made-up example: a returning NRI's jewellery
Here's a made-up example. Farah has worked in Dubai for six years. She lands at IGI Terminal 3 for her brother's wedding, wearing about 110 grams of gold bangles and a chain, most of it given to her at her own wedding in Lucknow. She walks through the green channel. An officer stops her, weighs the jewellery, and detains it because it exceeds her 40-gram allowance and was not declared. She is handed a pre-printed form waiving the show cause notice; she does not sign it and takes a detention receipt instead.
Within a week her lawyer writes to the Deputy Commissioner, attaching wedding photographs from 2017, the jeweller's bills, her Emirates ID and residence visa, and asks for release on payment of duty on the excess or for re-export, making clear she does not waive a notice or a hearing. Nothing happens. Six months pass with no show cause notice and no extension order.
Her lawyer then writes asking for return under Section 110(2), and when there is no response, files a writ petition in the Delhi High Court. The department's counsel takes instructions. In a case like this, a court could direct return of the jewellery, or a prompt decision, depending on the record before it. Had Farah signed the waiver and a statement saying the jewellery was bought for sale, her case would have been far weaker.
Prosecution, COFEPOSA and Look Out Circulars
Prosecution under the Customs Act needs sanction from the Principal Commissioner or Commissioner. Many smaller cases end at adjudication without prosecution, and compounding under Section 137(3) is possible in a number of cases on payment of the prescribed amount. Larger cases, especially smuggling with concealment or repeat offending, are usually prosecuted before the magistrate.
Preventive detention under the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act 1974 (COFEPOSA) is used against persons the government believes are engaged in smuggling. It allows detention without trial for up to a year, subject to an advisory board's review. Families challenge such orders by habeas corpus in the High Court, often on the ground that documents relied on were not supplied or the representation was not decided promptly; see challenging a COFEPOSA detention order.
The DRI and customs also request Look Out Circulars to stop a person from leaving India. If you are stopped at immigration, the remedy is usually a writ petition; our page on quashing a Look Out Circular explains how such petitions are decided. NRIs and foreign nationals in these situations can be represented through a power of attorney; see Delhi High Court matters for NRI and overseas clients.
Mistakes that make customs cases harder
- Signing a waiver to leave the airport quickly. A waiver of notice and hearing can cost you the strongest argument for return. You can leave with a detention receipt.
- Signing a statement you have not read. Section 108 statements are evidence. If one was signed under pressure, retract it in writing at once.
- Missing the six-month date. If no notice comes within six months of seizure, write for return immediately. Waiting a year weakens the request.
- Carrying goods for someone else. Agreeing to carry a package or jewellery for an acquaintance is how many first-time travellers end up as accused in smuggling cases.
- Going to the High Court before using the statutory appeal. A writ is for procedural failures and illegality, not a substitute for the Commissioner (Appeals) on merits.
- Ignoring the pre-deposit. An appeal without the required pre-deposit can be rejected without a hearing on merits.
What to do this week
If goods were detained at the airport, collect the detention receipt or seizure memo and every document that shows ownership and personal use, and write to the department asking for release while stating that you do not waive notice or hearing. Mark the date six months from the seizure. If a family member has been arrested, find out whether the offence is bailable, get the grounds of arrest and plan for the first production before the magistrate. If the DRI has summoned you, read the summons, gather the import documents and prepare before you appear. For goods held by the police rather than customs, the route is different; see release of seized property.
For advice on your detention receipt, show cause notice or Section 108 summons, or for updates on customs law and the Baggage Rules, contact Advocate B.K. Singh.
Frequently asked questions
How much gold can I bring to India without paying duty in 2026?
Under the Baggage Rules 2026, a resident returning after more than a year abroad may bring gold jewellery up to 40 grams (women) or 20 grams (men and others) free of duty, judged by weight. Shorter trips do not qualify for this jewellery allowance. Check the current rules on the CBIC website before travel.
Can customs keep my jewellery forever if no notice is issued?
No. Under Section 110(2), if no show cause notice is issued within six months of seizure, extendable by up to six months for reasons, the goods must be returned. Write for return as soon as the period ends.
Do I have to give a statement to customs or DRI?
If summoned under Section 108, you must appear and answer truthfully, and a refusal can be prosecuted. But read the statement before signing, correct errors and keep a copy. A statement made under pressure should be retracted in writing at the first opportunity.
Is arrest under the Customs Act bailable?
It depends on the offence. Serious categories, such as prohibited goods, duty evasion above Rs 50 lakh or undeclared goods worth over Rs 1 crore, are non-bailable. Others are bailable and the customs officer can grant bail.
Can I get anticipatory bail in a customs case?
Yes. The Supreme Court held in Radhika Agarwal v. Union of India (2025) that a person who fears arrest by customs or GST officers can seek anticipatory bail even before any complaint is filed.
What is a redemption fine?
It is a fine paid in lieu of confiscation under Section 125 so that the owner can take the goods back, along with duty. For ordinary goods the option must be given; for prohibited goods it is at the officer's discretion.
Where do I appeal against a customs adjudication order?
First to the Commissioner of Customs (Appeals) within sixty days, with a pre-deposit of 7.5 per cent of the amount in dispute. After that, to the CESTAT, and then to the High Court or Supreme Court depending on the question involved.
Can an NRI handle a customs case without coming to Delhi?
Often yes. Replies, appeals and writ petitions can be filed through a lawyer on a power of attorney, and many hearings can be attended online. Personal appearance may still be needed for a Section 108 summons or before a criminal court.