Quick Summary: The Bombay High Court has reversed a decision to cancel the registration of a car taken by authorities in a customs fraud case. The court found that the owner, Imran Humayun Chandiwala, was not involved in the fraud and had acted honestly.
On December 2, 2025, Judge N.J. Jamadar of the Bombay High Court made a decision involving Imran Humayun Chandiwala and the State of Maharashtra's Motor Vehicles Department. The case was about a Nissan car whose registration was canceled because of suspected fraud.
The car was first registered in Manipur in February 2020 under Meenarani Devi's name. Imran Chandiwala later bought the car for ₹1,22,50,000 and registered it in Mumbai in December 2020. However, it was found out that the car was illegally brought into the country using a special exemption from customs fees meant for diplomats.
In August 2021, the Director of Revenue Intelligence took the car. By January 2022, a temporary release was allowed, requiring a large bond and bank guarantee. Chandiwala approached the Settlement Commission, which settled the customs fees at ₹66,00,420 with extra interest and fines.
"The car was released after payment of customs duty, interest, and fine imposed by the Commission."
Even after settling the fees, the Anti-Corruption Bureau took the car again in June 2024. Chandiwala got it back through a legal bond. However, in March 2025, the Deputy RTO canceled the car's registration, saying the documents were fake.
Chandiwala's appeal was rejected by the higher authority, but the High Court found that he did not know about the fraud. The court noted that the Settlement Commission had cleared him of wrongdoing and restored the car's registration.
"The authorities under the Act, 1988, ought to have taken into account the order passed by the Settlement Commission."
Justice Jamadar stressed fairness, stating that punishing an innocent buyer for the fraud of others was not right. The court's decision allows Chandiwala to use his car again, marking a significant win for him.
