Dubai man takes Customs dept to court over Rolex:
Here's what Delhi HC said
New Delhi, Oct 3, 2025
The Customs Department seized the Rolex watch of a Dubai resident, alleging that he had failed to declare it. The High Court, however, called the Customs order an error, but still upheld the fine
'Another day, another story of Customs overreach' seems to be this week's theme, following the outcry over the Wintrack Inc. saga out of Chennai. The latest incidence of 'harassment' by the Customs department that has come to light is from New Delhi, where officials last year decided that a single Rolex qualified as a 'commercial' import, leading to a court case that ended in a bitter-sweet finish for the complainant.
When Mahesh Malkani flew into Delhi from Dubai in March 2024, he never expected that his wristwatch would land him in court. A luxury Rolex on his wrist became the subject of a months-long legal battle, which concluded this week with the Delhi High Court finally deciding that both parties were partially in the wrong.
Malkani, an Indian national residing in Dubai, arrived at Delhi’s Indira Gandhi International Airport, the Customs department seized the Rolex he was wearing, alleging that he had failed to declare it.
Nine months later, in January 2025, the department allowed him to redeem the watch by paying a fine of ₹180,000 within 120 days of the order. The watch itself was valued at ₹1.34 million.
"The passenger had adopted the wrong channel for import of goods as passenger baggage, in violation of provisions laid down in this regard. Goods are clearly in commercial quantity and cannot possibly be for personal use," the department had alleged while imposing the fine.
Malkani later approached the Delhi High Court against the Customs order, where he was able to secure only a partial victory.
In an order dated September 17, the bench of Justices Prathiba M Singh and Shail Jain ruled that the Customs Department’s order contained an “error,” noting that a single Rolex watch could not be treated as commercial quantity.
"Clearly, this court is of the view that one Rolex watch cannot be held to be a commercial quantity and there is no reason as to why the same cannot be kept for personal use," the court said, according to LiveLaw.
However, the court still directed Malkani to pay the redemption fine in accordance with the Customs order in order to reclaim the watch.
"The adjudicating authority is cautioned to ensure that in future, such errors do not occur in the orders which are passed by the adjudicating authority," the court added.
Experts cited by The Economic Times noted that the fine was upheld because high-value items, those valued above ₹50,000, must be declared, with only certain exceptions. The Rolex, as per the letter of the law, was not exempt.
[The Business Standard]
