A special court, Uran has granted bail to Sunil Dattaram Dalvi, a Customs Superintendent posted at Navkar Container Freight Station (CFS), Nhava Sheva, who was arrested by the Directorate of Revenue Intelligence (DRI) in connection with an alleged case of misdeclaration of imported goods.
Dalvi, a long-serving customs officer who joined as a Data Entry Operator in 1995 and rose to Superintendent earlier this year, was accused of filing a false examination report in the Customs Electronic Data Interchange (EDI) system regarding a consignment under Bill of Entry. The consignment, stuffed in container was later found to contain mis-declared cosmetic products worth over Rs. 5.33 crore, including items of Pakistani origin, whose import is restricted under India’s trade policy.
DRI’s Allegations
The import of Cosmetics into India is restricted under Import Policy and for import of cosmetic from foreign registration certificate from Central Drugs Standard Control Organization (CDSCO) is required under the Cosmetics Rules, 2020. Thus, without registration certificate import is in violation of Foreign Trade Policy and is accordingly prohibited.
As regards import of cosmetics of Pakistan origin, vide Notification No.06/2025-26 dated 2nd May 2025 issued by DGFT, Para 2.20A has been inserted in FTP 2023 and made prohibited direct or indirect or transit of all goods originating in or exported from Pakistan. This restriction is imposed in the interest of national security and public policy.
The Custom Examination officer posted at Navkar CFS (Preeti), Shri Sunil D. Dalvi, was the officer assigned to conduct examination of import cargo and grant Out of Charge. In the case of container BSIU9320830, the RMS order mandated 100% examination in his presence.
However, Dalvi, using his departmental SSOID 10034350, uploaded an examination report in the EDI system on 07.08.2025 stating that the container was opened, 100% examined, marks and numbers verified, and declarations tallied. This report was highly detailed and affirmatively certified that examination had been carried out.
Yet, the DRI examination the very next day revealed that the container remained untouched and was stuffed with mis declared cosmetics including Pakistan origin cosmetics.
Evidence from earlier consignments also established a pattern of out of charge of the containers by Shri Sunil Dalvi, without examining the same. Containers were all cleared on his watch, and in EDI system it is seen that examination reports entered, and Out of Charge of the said containers were given by him. Yet both the labour register and CCTV evidence confirm and corroborate the fact that no examination ever took place.
The repetition demonstrated that his conduct was not an isolated lapse but part of a systematic modus operandi facilitating the syndicate.
The investigation therefore establishes that Shri Sunil D. Dalvi knowingly recorded false examination reports in the EDI system, facilitated removal of mis declared and prohibited goods without examination, and he appears to have colluded with the syndicate led by Shri Sachin Pawar. His conduct is directly responsible for enabling attempted smuggling of prohibited cosmetics valued at ₹5.33 Crores. His actions constitute abetment to smuggling and fraud under the Customs Act, 1962, and amount to grave misconduct, dereliction of duty and breach of integrity under service rules, warranting strict penal and disciplinary action.
According to the DRI, Dalvi deliberately uploaded a report stating that the container was opened and examined in full, with marks and declarations verified. However, CCTV footage and labour registers reportedly confirmed that no such examination took place. The DRI also alleged that this was not an isolated incident and pointed to a pattern in earlier consignments cleared under Dalvi’s watch without proper checks.
The agency argued that Dalvi’s conduct amounted to abetment of smuggling and fraud under the Customs Act, 1962, and that his arrest was necessary for an ongoing investigation into possible acceptance of bribes and other irregularities.
Defence Argument
Dr. Sujay Kantawala, the Counsel on behalf of Applicant contended that the alleged lapse was a clerical error. The officer mistakenly entered details of another Bill of Entry but immediately reported the error within minutes to his superior, Assistant Commissioner K. B. Nandan, who acknowledged it and directed him to re-examine the container the following day.
His defence further stressed that the goods remained in Customs custody, no clearance for home consumption was granted, and there was no evidence of bribery or gratification. They also noted that Dalvi had already been suspended and removed from sensitive postings, reducing any risk of tampering with records.
Court’s Observations
After hearing both sides, the court observed that while the container did indeed contain misdeclared goods, Dalvi had promptly filed an incident report after realizing his mistake. The court noted the absence of evidence showing acceptance of illegal gratification, as well as the fact that the DRI had not given Dalvi an opportunity to correct the error as directed by his superior officer.
Referring to previous judicial precedents, the court also emphasized that once goods are cleared, there is a presumption of due procedure unless proven otherwise.
In its order, the court granted bail to Dalvi on execution of a personal bond of ₹1 lakh with surety of the same amount, subject to strict conditions he must cooperate fully with the investigation; he cannot tamper with evidence or influence witnesses; he must report to the DRI office at Nhava Sheva once a month until completion of the probe; and he cannot leave India without prior court permission.
Case Details
Case Title: Sunil Dattaram Dalvi Versus DRI
Date: 03/09/2025
Counsel For Petitioner: Dr. Sujay Kantawala
Counsel For Respondent: DRI
