Court Tells Customs: Return the Gold Bars — Why the Islamabad High Court's Show-Cause Notice Matters for Every Gold Owner

Court Tells Customs: Return the Gold Bars — Why the Islamabad High Court's Show-Cause Notice Matters for Every Gold Owner

On 19 October 2026, a division bench of the Islamabad High Court — Justice Sardar Ejaz Ishaq and Justice Arbab Muhammad Tahir — issued a show-cause notice to the Collector of Customs for failing to return seized gold bars, after the petitioner, Waqar-un-Nisa, filed a contempt petition saying the court's earlier order had not been obeyed.

According to reports, the court had earlier directed that the gold be returned within two weeks. Instead of the bars, the petitioner was reportedly offered around Rs4.8 million, calculated at the 2023 gold price — an offer the court rejected, since gold's value has risen sharply since then.

Why the 2023 Price Was Rejected

Gold is not like a fixed deposit. Its price moves every day, and by late October 2026 the market had moved far above 2023 levels — 25 October boards showed 24K around Rs414,000–Rs418,000 per tola and 22K near Rs383,000, though figures vary by board and time of day, so always check aaj ka rate before acting. This is general guidance, not financial advice.

Paying a 2023 price for gold held since then would, in effect, make the owner absorb years of price movement while the gold itself was out of their hands. The court's refusal signals that the state cannot quietly settle a gold claim at a stale price.

The Bars 'Could No Longer Be Recovered'

Reports say the seized bars had been handed over to the State Bank of Pakistan and could no longer be recovered in their original form — a detail that reportedly troubled the court, because the order was for the return of the gold itself.

The court also examined Section 169(4) of the Customs Act, which deals with the sale of confiscated goods and the safekeeping of the proceeds. According to reports, the provision contains no mention of an irrevocable transfer to the State Bank — a gap the bench asked the Collector to explain.

What This Means for Ordinary Gold Owners

• Keep the original purchase receipt and a written record of weight, purity and any identifying marks, and photograph your pieces before handing them over to anyone.

• Never accept a cash settlement for gold at an old price without checking aaj ka rate and getting the offer in writing.

• If an authority holds your gold, keep every order, challan and receipt, and note every date — this case turned on dates and orders, not on arguments.

What Happens Next

The Collector must respond within two weeks, and proceedings were adjourned until November. The show-cause notice is not a final verdict — it is the court demanding an explanation for why its order was not followed.

Until that response, the case stands as a warning: even the state must answer when it holds a citizen's gold, and a court will ask where the gold went.

The Jeweller's Bottom Line

Most owners will never face a seizure, but the principle travels: gold's value is in the metal and the paper that proves it is yours. Keep both safe, keep both current, and never let anyone — shop, bank or official — take your gold without a written record you can produce in court.

If your gold is ever seized or held, consult a lawyer promptly; deadlines in such cases are short, and delay can cost more than the legal fee.