Seizure of smuggled gold surged four-fold in Indian state during Q1 FY '15

Author: Paul Ploumis08 Jul 2014 Last updated at 08:16:25 GMT

NEW DELHI (Scrap Monster): The Directorate of Revenue Intelligence (DRI) and the Indian Customs Department officials together seized 128 kilograms of smuggled gold in the Indian state of Gujarat during the initial quarter (April to June) of the current fiscal year 2014-’15.The seizure during the period has jumped by nearly four times when compared with the confiscations made during the corresponding quarter in FY ’14. The total value of seized gold amounted to Rs.37 crores.

The seizure of gold at Sardar Vallabhbhai International Airport has more than tripled during first quarter of 2014-’15. The total gold seized during Q1 of 2013-’14 was only 6.1 kg, whereas it surged to 20.3 kg during first quarter this fiscal. The number of cases registered increased five-fold from 3 in Q1 2013-’14 to 17 during Q1 2014-’15.

Also, the total value of seized gold from the airport more than doubled during April to June this year, totaling Rs 5.5 crores. This is when compared with gold worth Rs 2.6 crores seized during Q1 2013-’14. The number of arrests made during the three-month period between April and June 2014 zoomed to 26 as against 4 number of arrests made during the corresponding three-month period in 2013.

According to gold industry officials, smugglers earn huge amount of money by bringing gold illegally into the country. The rise in smuggling is primarily attributed to the prevailing high import duty structure on gold. The Central government had raised the import duty from 2% to 10% during 2013 to bring the country’s Current Account Deficit (CAD) under control. Now that CAD has been brought under control, the industry hopes duty cut decisions to be announced during the maiden budget of the new government.