Airport gold smuggling thriving, up by 207% in four years

Amid the Centre assuring Parliament of a fair probe into the Kerala gold smuggling case, official data has revealed a 207% increase in gold smuggled through various airports in the country in four years between 2016-17 and 2019-2020.

While in 2016-17, 921 kg gold was seized from various airports in the country, the volume rose to 2,646 kg in 2018-19 and 2,829 kg in 2019-20, data presented in Parliament showed.

In value terms, the seizure jumped from Rs 243.75 crore in 2016-17 to Rs 857.95 crore in 2019-20.

It was in 2019 that the Centre raised import duty on gold to 12.55% from 10% despite concerns being raised that further rise in duty on the yellow metal would encourage smuggling. The government had then said that it had assessed smuggling dimensions before taking the decision.

In reply to a written question in the Lok Sabha from Revolutionary Socialist Party (RSP) leader N K Premchandran and others, Minister of State for Finance Anurag Singh Thakur replied that over 30 kg gold was seized from Thiruvananthapuram airport and that a prime accused in the case was an “influential” person.

He, however, said that the government was taking effective steps for a fair and proper investigation but stopped short of disclosing further details as it may impact the case.

The minister said customs authorities and the NIA have launched the investigation into the seizure of gold consignment, which was addressed to a diplomat of the consulate general of United Arab Emirates in Thiruvananthapuram. As many as 16 people have been arrested in the case.

Directorate of Enforcement has also initiated money laundering investigation in two gold smuggling cases related to Kerala.

A recent report by global NGO 'IMPACT' said India is the largest gold smuggling hub in the world. According to the report, gold makes its way indirectly to India from Tanzania and Uganda via India-based gold dealers operating in East Africa, who export gold to Dubai, and the bullion eventually lands in India.