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Rolex watch seized from Dubai based traveler at Delhi Airport, ruled ‘Not Commercial’ by High Court

Rolex watch seized from Dubai based traveler at Delhi Airport, ruled 'Not Commercial' by High Court

Delhi High Court rules single Rolex watch worn by Dubai resident is for personal use, not commercial import/Representative Image

In a case that tested the boundaries of customs classification and personal property rights, the Delhi High Court has ruled that a single Rolex watch seized from a Dubai-based Indian traveler does not constitute a “commercial quantity.” While upholding penalties imposed by customs authorities, the court clarified the legal interpretation of personal use under customs law, offering critical guidance for international passengers carrying high-value personal items.

Background: Rolex seizure at Delhi Airport

On March 7, 2024, Mahesh Malkani, an Indian citizen and current resident of Dubai, landed at Delhi’s Indira Gandhi International Airport wearing a Rolex Submariner valued at approximately AED 56,000 (around ₹12.7 lakh). Upon arrival, he passed through the Green Channel, which is reserved for travelers with no dutiable goods to declare.However, customs officials intercepted Malkani, seized his Rolex watch, and issued a detention receipt. The customs department alleged that Malkani had used the wrong channel to import the watch, thus violating baggage rules. Officials concluded that the watch was not for personal use and categorized the single item as a “commercial quantity” under customs provisions.

Customs order and penalties imposed

Following the seizure, an Order-in-Original dated January 30, 2025, was issued by the Commissioner of Customs, IGI Airport, permitting Malkani to redeem the watch for re-export purposes. This redemption was allowed on the condition that he pay:

  • ₹1.8 lakh (approx. AED 7,500) as a redemption fine, and
  • A penalty of AED 6,250, in addition to
  • Any applicable warehousing charges accumulated since the seizure.

The order required Malkani to complete the redemption process within 120 days of its issuance. However, he failed to meet the deadline and instead challenged the order in court, arguing against the classification of the watch as commercial and seeking clarity on the redemption terms.

Court ruling: Personal item, not commercial consignment

The case was heard by a Division Bench of Justices Pratibha M. Singh and Sahil Jain in the Delhi High Court, which delivered its judgment on September 17, 2025.The court made several key observations:

  • The Customs Commissioner had rightly permitted redemption of the Rolex watch.
  • However, the classification of a single luxury watch as “commercial quantity” was deemed legally incorrect.
  • The bench stated, “Clearly, this Court is of the view that one Rolex watch cannot be held to be a commercial quantity, and there is no reason why the same cannot be kept for personal use.”

The court concluded that wearing a high-value watch while travelling does not by itself justify its seizure as commercial import, especially when the item is clearly for personal use.

Final outcome and broader implications

While the court upheld the redemption fine and penalty, it provided an extended deadline of October 31, 2025, for Malkani to pay the charges and reclaim the detained watch. The ruling did not waive any financial obligations previously imposed but gave Malkani another opportunity to complete the process.The court also stressed the importance of practical and cautious adjudication in similar future cases, particularly when it involves passengers carrying personal belongings. It urged customs officials to avoid arbitrary or blanket classifications that may not stand up to legal scrutiny.Legal experts have welcomed the judgment as a corrective step in customs enforcement. Supreme Court advocate Dr. Sujay Kantawala noted that the ruling “underscores that customs must take a practical view of what counts as ‘personal use’ versus ‘commercial quantity.’”This case also serves as a reminder to international travelers: under Indian customs regulations, luxury goods exceeding AED 2,000 in value (approx. ₹45,000) must be declared upon arrival. Failure to do so, even unintentionally, can lead to hefty fines, seizures, and legal complications—even if the item is for personal use. Go to Source

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