With the festival season approaching, the trend of gold and forex smuggling is firming up.

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Some jewellers are also reportedly buying smuggled gold to avoid taxation. Sources in the revenue intelligence say the trend of smuggling forex to other countries to buy gold in return and then smuggle the metal into India is now firming up due to increase in demand of gold.

According to surveys by revenue intelligence, some jewellers have got into the habit of buying smuggled gold as it enables them to evade tax. Seizures of forex and gold indicate the trend is strengthening.

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Directorate of Revenue Intelligence DRI seized foreign currency worth Rs 1. The DRI sleuths intercepted a Dubai bound passenger on September 3 at the airport.

His personal and baggage search led to recovery of 2,50, euros equivalent to around Rs 1. A Delhi based resident was arrested under the provisions of Customs Act.

According to the sources, he had made more than six foreign visits this year alone with the purpose of smuggling. This seizure comes after the recent seizure on August 18 wherein foreign currency worth around Rs 5 crore were seized from two different groups in single night at Delhi Airport, leading to arrest of 4 persons. The foreign currency is generally concealed in such a manner to avoid detection during the security check and generally handed over to foreign bound passenger by a domestic bound accomplice.

In a recent case, an accused and his associates had planned to board a flight to Hong Kong while two of their associates carrying forex were booked for a domestic flight to Mumbai.

They had timed their journey in such a manner that their flight time matched. And they met in the common lounge where international and domestic passengers assemble after security checks. The currency bag was handed over to the accused and his two associates, who were to fly to Hong Kong. The planning was perfect before entering the airport, the carriers were given the currency as they had to take domestic flight for which currency checks are not stringent and so the syndicate managed to clear security hold area without the foreign currency being detected.

The busting of this racket also revealed a major loophole in the security set up at the airport common area, where scrupulous elements could transfer gold, foreign currency and even narcotics for the purpose of international smuggling. DRI officials had flagged up the matter with the higher authorities. Other than smuggling in gold from Dubai through air route, it is also being smuggled in via Myanmar through land border. The Directorate of Revenue Intelligence has seized more than Rs 21 croreworth of foreign currency from April onwards alone.

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The arrests were made under Section and A of Customs Act Recently there was a major haul of 27 kg of gold in West Bengal and a foiled attempt to smuggle out USD 7. The foreign currency was seized from a Manipur-bound truck near Siliguri, it was to later go to Myanmar. In another seizure 58 kg of gold was seized in the same state.

Such cases are also being referred to Income Tax and the Enforcement Directorate since they also involve violation of Foreign Exchange Management Act and Income Tax Act. Sources said the trend is firming up due to increase in gold demand and increase in its duty.

Hawala operations are expensive as it involves paying of commission. Therefore for buying gold in foreign countries forex is sent through couriers. In some cases couriers of forex are used for smuggling in gold as well. For more news from India Today, follow us on Twitter indiatoday and on Facebook at facebook.

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