I was stopped by an officer for running a stop sign after showing all required documentation I was told to step out of vehicle. I was placed in handcuffs and told drugs were found in my car which I never saw after completing the search the handcuffs were removed and I was told I would receive charges in the mail.I was happy until I stopped for gas and noticed my rolex watch and a couple other items were missing .I called as soon as I went home and called and inquired about my missing property and was told that they never saw my watch or the other missing items and when I asked what to do the supervisor discouraged me from reporting the loss and reminded me that the officers had done me a huge favor letting me go
The details of your arrest are not clear (also, the answer may vary depending on what substance was found, how much, and what country it was found in). But in general, police are not allowed to steal arrestee property, as you imply happened. So you can file a criminal complaint, which is typically done at the police station. Then an investigation will follow where the police decide if the case has enough merit to refer to the prosecutor or to some higher review board within the police department. This could result in return of the watch and arrest of the officer, or not, and could also result in your prosecution for a drug offense. As far as I know, in no jurisdiction does an officer's decision to "ignore" a crime immunize the perpetrator from later prosecution. You might want to secure the services of a specialist who can communicate your concern over the possibly inadvertent retention of the watch (i.e. a lawyer).