AHMEDABAD: In spite of relaxation by the central government in restrictions on import of gold, smuggling of the yellow metal continues to rise at the city airport. In the first four months of 2015 itself, Customs and Directorate of Revenue Intelligence (DRI) have detected 18 cases of gold smuggling and recovered 22.87kg gold worth Rs 6.17 crore at Sardar Vallabhbhai Patel International Airport.
The cases spiked to a record level following restrictions on gold imports in June 2013 to control current account deficit (CAD). Airport continues to be the major hotspot as smugglers have been consistently held while trying to smuggle in gold bars using carriers.
Compared to 5kg and 10.7kg gold recovered by Customs at airport in 2012 and 2013 respectively, the recovery shot up to 54.82kg in 2014.
In February this year, City Crime Branch unearthed major gold smuggling racket when it nabbed three people and recovered 60kg gold outside airport. The probe in the case is still on.
In August last year, Customs department formed a special Air Intelligence Unit (AIU) to especially handle gold smuggling cases comprising of two commissioner-level officers. After formation of AIU, detection rate has increased but it has not proved detrimental to smugglers.
According to experts and bullion traders, restrictions on imports along with high import duties (up to 10%) are two major reasons for gold smuggling. “The gold prices have come down in the last one year from Rs 32,000 per 10 grams to Rs 27,000 per 10 grams but still the margin is big compared to prices in middle-east and India,” said a bullion trader.
Most of the cases of smuggling have been detected on the Dubai-Sharjah-Doha route. People who pay a duty of Rs 2.7 lakh per kg in Dubai still stand to gain at least Rs 75,000 per kg, owing to the price difference in the two countries.
“These carriers have taken to Ahmedabad airport as an alternative for Delhi and Mumbai airports. They come here believing they can escape,” said sources at airport. According to details available, around 70% of the smugglers caught in last one year belonged to either Delhi, Mumbai, Bangalore or Chennai.
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