Gauhati High Court sets aside Dimapur court order releasing INR 3.2 crore areca nuts seized by DRI in Nagaland
DIMAPUR — The Kohima Bench of Gauhati High Court has set aside an order of the Dimapur District and Sessions Court directing the release of 45.6 tonnes of areca nuts, valued at approximately INR 3.20 crore, seized by the Directorate of Revenue Intelligence (DRI) on suspicion of being smuggled foreign-origin produce.
The High Court, in a judgement delivered on Thursday, allowed a criminal petition filed by the DRI and held that the Dimapur court’s March 12 order releasing the seized consignment was beyond its jurisdiction.
The case relates to the seizure of 570 bags of areca nuts by DRI officials at “Kukidolong on National Highway leading towards Dimapur” on December 20, 2025. The consignment, weighing around 45,600 kg, was intercepted while being transported from Ukhrul district in Manipur towards Dimapur. The approximate value of the consignment was assessed at INR 3,19,52,376.
The DRI had suspected the nuts to be of foreign origin and liable for confiscation under the Customs Act, 1962. The consignment, along with the trucks and other materials, was seized under Section 110 of the Customs Act.
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The drivers had produced transit passes purportedly issued by Forest Department, Phek Division. However, the court noted that the pass covered only 25,000 kg, while the actual quantity recovered was 45,600 kg.
The seized areca nuts were subsequently claimed by a private party, which approached the Dimapur Principal District and Sessions Judge/Special Judge seeking their release. The court had granted zimma of the consignment on March 12 on furnishing an INR 10 lakh bond and surety.
The High Court further noted that a Coordinate Bench had already directed release of the 570 bags through an order dated April 9, 2026, in a separate writ petition, while a contempt case was subsequently filed alleging non-compliance with that direction.
However, the court clarified that the criminal petition before it concerned the legality of the March 12 order passed by the Dimapur court.
In examining the matter, the High Court observed that although the DRI had filed a complaint under various provisions of the Customs Act, including Section 135, the records did not contain the required prior sanction from the Principal Commissioner or Commissioner of Customs. Nor was there a specific order showing that the Chief Judicial Magistrate, Dimapur, had taken cognisance of the offence.
The court held that, in the absence of such sanction and cognisance, the regular criminal court could not exercise jurisdiction to release the seized goods under the general criminal law.
It stated that provisional release of goods seized under the Customs Act had to be dealt with under Sections 110 and 110A of the Customs Act by the proper officer, pending adjudication.
Accordingly, the High Court held that the Dimapur court’s exercise of jurisdiction under the Bharatiya Nagarik Suraksha Sanhita (BNSS) to release the seized areca nuts was beyond jurisdiction.
The court therefore set aside the March 12 order of the Principal District and Sessions Judge/Special Judge, Dimapur, and allowed the DRI’s criminal petition.
The judgement, however, clarified that Customs authorities could proceed with confiscation and penalty proceedings if sufficient grounds existed under the Customs Act.