Three gold bars seized in Indore car confiscated with penalty
DRI officers stopped a car at a toll plaza in Indore and seized three gold bars of about 3 kg said to be of foreign origin. The adjudicating authority ordered absolute confiscation and a Rs 6 lakh penalty. CESTAT upheld that order in May 2026 and the High Court later admitted a challenge.
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 penalty stand as upheld by CESTAT; the High Court has admitted the appeal, framed questions of law and ordered no coercive action meanwhile.
What happened
The Tribunal record states that on specific intelligence, DRI Indore officers intercepted a car at Sonway Toll Plaza, Indore, and found three yellow-metal bars wrapped in newspaper concealed in cavities beneath the rear seat.
Juris Hour, reporting the High Court appeal, states the Department treated the bars as foreign-origin smuggled gold, and that a Rs 6 lakh penalty under Section 112(b)(i) was imposed and upheld by the Commissioner (Appeals) and by CESTAT in its 19 May 2026 final order.
The High Court Bench at Indore admitted the Section 130 appeal and framed eight substantial questions, including whether confiscation and penalty could rest on a retracted Section 108 statement without Section 138B compliance and on an assayer's opinion on foreign origin.
The High Court issued notice, granted time for reply and directed no coercive action against the appellant pending hearing.
What the record says
“This order disposes of 6 appeals arising out of the same investigation all the appellants being co-noticees to the show cause notice.”
CESTAT Final Order Nos. 50970-50975/2026 dated 19-05-2026, opening paragraph as indexed — read the full text
A peaceful economic act
The case concerned alleged customs violations involving the possession, transport and asserted foreign origin of gold.
What we could not confirm
The full CESTAT order text was not openly accessible beyond the indexed header and facts; penalty and confiscation details are corroborated by the High Court appeal report. District is Indore based on the toll-plaza interception.