Bullion trader's Rs 1.69 crore in cash seized as 'smuggling proceeds'; released four years later
In October 2022 customs officers searched a Nellore bullion trader's home and office and seized Rs 1,68,95,000 in cash, alleging it was the sale proceeds of smuggled gold, though no gold or smuggling document was found. The cash was confiscated and a Rs 10 lakh penalty imposed. The first appeal set that aside but ordered fresh adjudication; on 10 September 2026 the tribunal dismissed Customs' appeal and ordered the money released.
This page records what the cited court, tribunal and government records say happened. Findings belong to the court or authority that made them; this register adds none of its own. Names of private individuals are withheld unless a naming gate clears them.
How we verify →Confiscation and penalties set aside; release of the cash ordered on 10 September 2026, almost four years after the seizure.
What happened
The tribunal recorded that Customs (Preventive), Vijayawada, searched the trader's residence and business premises in Nellore on 17 and 18 October 2022 and recovered Rs 84,95,000 from the home and Rs 84,00,000 from the office. No gold, bullion, foreign packaging or document showing illicit import was found.
The trader said the cash came from retail bullion sales below Rs 2 lakh each and customers' advance bookings before Dhanteras, and produced GST returns, bill books and KYC records. Three customers summoned by the department confirmed paying cash for bullion or advances.
The Additional Commissioner nonetheless ordered absolute confiscation of the cash under section 121 of the Customs Act and a penalty of Rs 10,00,000 on 5 July 2023. The Commissioner (Appeals) set that order aside but sent the case back for fresh adjudication. On 10 September 2026 the tribunal dismissed the department's appeal, set aside the direction for fresh adjudication, the confiscation and the penalties, and directed that 'the seized currency shall be released forthwith'.
What the tribunal said
“Mere possession of a substantial amount of cash may give rise to suspicion or justify enquiry. It does not, by itself, establish that the currency represents sale proceeds of smuggled goods.”
Customs Appeal No. 30314 of 2024, final order dated 10 September 2026, para 18 — read the full text
Keeping your own cash
A trader's working capital was taken for four years on suspicion alone. The tribunal found no evidence tying the money to any smuggling.
What we could not confirm
This category is meant for moving and investing capital, including hawala and foreign-exchange cases. No recent Andhra Pradesh case of that kind with an official record and no other alleged crime was found, so this record covers holding capital. The adjudicating authority also relied on a separate gold seizure at Bollapalli toll plaza; the tribunal found no link established.