The Madras High Court has ruled that Indian currency seized during a Hawala investigation is classified as a 'thing' under Section 110(3) of the Customs Act, which is not subject to the six-month release rule for goods. This judgment clarifies the legal status of currency in customs law.
Madras HC Defines Indian Currency as 'Thing' Under Customs Act
The Madras High Court has held that Indian currency, when seized during investigations related to Hawala activities, qualifies as a 'thing' under Section 110(3) of the Customs Act. This classification means that such currency does not invoke the six-month rule typically applicable to the release of goods.
This interpretation aligns with the broader scope of the Customs Act, which provides authorities with the necessary powers to detain items that are integral to illegal activities. The ruling aims to prevent potential misuse of the release provision under circumstances where counterfeit or unaccounted funds are involved.
For legal practitioners, this ruling has significant implications for cases involving seizure of currency. It emphasizes the need for careful consideration of the classification of seized items, which affects the rights of individuals and entitles them to procedural protections under the law.
Citations
- Madras HC (2026) 2 Customs Reporter 210
