Seizure of smuggled gold in the first three months of the current fiscal has already exceeded 50 per cent of the total amount seized during previous fiscal. It is also over seven times of the amount seized during 2011-12.

According to vigilance officials, one of the basic reasons for the surge in smuggling is higher import duty. Last year, the Government hiked the duty to 10 per cent, besides the Reserve Bank of India introduced the 80:20 Scheme.

The officials have found that gold smugglers are adopting newer methods and newer routes for bringing gold illegally. Even, the Special Economic Zones are being used. Last month, the Directorate of Revenue Intelligence or DRI (the intelligence wing of the indirect tax body, the Central Board of Excise and Custom) found the largest diversion of gold from an SEZ in Surat, Gujarat. The said SEZ imported 50 kg of gold and then tried to divert half of it into the domestic market, but was intercepted by DRI officials.

Finance Ministry officials informed that 22 Government employees (including those from public sector units) and 49 non-government officials were found involved in gold smuggling cases last fiscal.

The DRI has written to the Finance Ministry for reviewing the import curbs.

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