Rules 15 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Part A of Chapter III of the Customs Attachment of Property Rules, 1995 sets out how attached property is sold. Rules 15 to 20 cover when sale may begin, the reserve price, special treatment of negotiable instruments and shares, the proclamation of sale of immovable property and the purchaser's right to ask for a sale to be set aside.
This article reads the Rules as amended up to the CBIC text updated 6 August 2014 (reflecting Notification No. 56/2014-Cus. (N.T.)). Later notifications should be checked, as no official consolidated text exists beyond the CBIC text.
If the certificate amount and the cost of detention are not paid within thirty days from the date of attachment, the Commissioner may authorise the Proper Officer to sell the property by public auction, with a reserve price if he fixes one. Negotiable instruments and shares may be sold through a broker. Immovable property needs a proclamation of sale. The purchaser has thirty days from the sale to apply to set it aside if the defaulter had no saleable interest.
Rule 15: sale of property
If the amount in the certificate together with the cost of detention is not paid within thirty days from the date of attachment, the Principal Commissioner or Commissioner may authorise the Proper Officer to realise the amount by sale of the defaulter's property in public auction.
Proviso. The Principal Commissioner or Commissioner may fix the reserve price for any property to be sold in public auction and order that any bid be accepted only on the condition that it is not less than the reserve price.
The thirty days run from attachment. The earlier steps (certificate, seven-day notice, attachment) are in our article on rules 1 to 5, and attachment safeguards are in rules 6 to 14. A defaulter has this period to pay the certificate amount and the cost of detention and avoid a sale. If you want advice on a sale notice or a possible challenge, our legal dispute resolution team can help.
Rule 16: negotiable instruments and shares
Notwithstanding anything else in the Rules, where the property to be sold is a negotiable instrument or a share in a corporation, the Proper Officer may, instead of directing a sale by public auction, authorise the sale of that instrument or share through a broker.
Rule 17: proclamation of sale
Where any immovable property is ordered to be sold, the Proper Officer shall cause a proclamation of the intended sale to be made in the language of the district.
Rule 18: contents of the proclamation
A proclamation of sale of immovable property is drawn up after notice to the defaulter. It states the time and place of sale and specifies, as fairly and accurately as possible:
- (a) the property to be sold;
- (b) the revenue, if any, assessed on the property or any part of it;
- (c) the amount for recovery of which sale is ordered;
- (d) the reserve price, if any, below which the property may not be sold; and
- (e) any other thing the Proper Officer considers material for a purchaser to know to judge the nature and value of the property.
A defaulter should review the proclamation for accuracy. A material mistake in the description or the amount can affect how buyers read the property.
Rule 19: mode of making the proclamation
- (i) The proclamation of sale of immovable property is made at some place on or near the property by beat of drum or other customary mode, and a copy is affixed on a conspicuous part of the property and on a conspicuous part of the office of the Proper Officer.
- (ii) If the Proper Officer so directs, the proclamation is also published in a local newspaper, and the cost of publication is deemed part of the costs of the sale.
- (iii) Where the property is divided into lots for separate sale, a separate proclamation for each lot is not necessary, unless proper notice of the sale cannot, in the Proper Officer's opinion, otherwise be given.
Rule 20: setting aside where the defaulter has no saleable interest
At any time within thirty days of the sale, the purchaser may apply to the Proper Officer to set aside the sale on the ground that the defaulter has no saleable interest in the property sold.
The rule protects buyers who find, after the sale, that the property was not the defaulter's to sell. What happens next, including confirmation and the order setting aside a sale, is in our article on rules 21 to 28.
The sale path in one table
| Stage | Rule | Printed requirement |
|---|---|---|
| Waiting period | 15 | Thirty days from attachment without payment of certificate amount and cost of detention |
| Mode | 15 | Public auction, authorised by the Commissioner |
| Reserve price | 15 proviso | Commissioner may fix; bid not less than reserve price |
| Shares and negotiable instruments | 16 | May be sold through a broker |
| Proclamation (immovable) | 17, 18 | In the language of the district; time, place, property, revenue, amount, reserve price, material facts |
| Mode of proclamation | 19 | Drum or customary mode; affixed on property and office; newspaper if directed |
| Purchaser's challenge | 20 | Within thirty days of sale; no saleable interest |
Example. Cedar Metals has not paid its certificate amount or the cost of detention within thirty days of attachment of a plot. The Commissioner authorises a public auction and fixes a reserve price. The Proper Officer causes a proclamation to be made in the local language, naming the plot, the amount to be recovered and the reserve price. Within thirty days of the sale, the buyer discovers Cedar owned only a half share and applies under rule 20 to set the sale aside on the ground that Cedar had no saleable interest in the whole.
For the Act, see our section 142 article.
Need help with a customs recovery sale?
A sale proclamation is the last warning. If dues can still be paid or the sale process looks defective, act early. Our legal dispute resolution team can help you assess your options. For the title and proceeds rules that follow, see rules 21 to 28.
Key takeaways
- Sale by public auction may be authorised once the certificate amount and cost of detention are unpaid thirty days after attachment.
- The Commissioner may fix a reserve price; bids below it are not accepted.
- Negotiable instruments and shares may be sold through a broker.
- Immovable property needs a proclamation in the language of the district, with the contents rule 18 lists.
- A purchaser has thirty days from the sale to seek setting aside for want of saleable interest.
Read next
- Rules 21–28 of the Customs Attachment of Property Rules, 1995: confirmation, certificate, title and proceeds
- Rules 6–14 of the Customs Attachment of Property Rules, 1995: limits, inventory and exempt property
- Rules 1–5 of the Customs Attachment of Property Rules, 1995
- Section 142 of the Customs Act: recovery of sums due to Government
Disclaimer: Based on the customs rules named above as published on the CBIC Tax Information Portal and, for sets amended since 2023, the amending notifications (read through a TaxClue consolidated reading text; no official consolidated text exists), as consulted on 3 October 2026. Later notifications, rates and the Customs Act, 1962 provisions referred to should be checked. This article is general information, not legal advice; check the official text before acting.