Customs officials at international airports are struggling to catch up with the ever-changing modus operandi of gold smugglers who have gone on an overdrive following the hike in import duty on gold to 10 per cent.

Smugglers have become “very smart,” employing new communications technologies for their activities, a senior Customs official pointed out. New technologies also offered the smugglers a range of new possibilities for concealing the contraband.

Spurt in smuggling

There has been a spurt in gold smuggling in Kerala’s three international airports after the government increased the import duty on gold. Dubai, a major global gold trading centre, is the main source of gold smuggled into India.

Low prices, lack of any restrictions on gold purchase and easy air connectivity to Indian destinations made Dubai the favoured city of smugglers.

However, the Customs official said, the authorities are aware that the recent gold seizures at the three airports were just the proverbial tip of the iceberg as the lion’s share go undetected. The smugglers, using high-tech communication facilities, often outwit the detection agencies.

Risk takers

The official pointed out that since the profit margin was so high – around Rs 4 lakh a kg – the smugglers’ gangs are ready to take great risks. The carriers, who get between Rs 1 and 2 lakh for every kg of smuggled gold, are even ready to put their lives at risk.

Since gold is in short supply in the country, jewellery manufacturers are in a crisis. Kerala, with large number of jewellers and jewellery makers, has a substantial gold market. Unable to source gold through legal channels, many of the jewellers are forced to buy gold from smugglers.

Complicity

The fact that three Customs officials have recently been arrested by the CBI for their role in gold smuggling showed that the smugglers regularly received help from within government agencies. A DRI official said this has prompted his agency to keep tabs on Customs staff too.

He also pointed out that last week’s seizure of gold from an Air India crew member and her friend showed that even airline staff were involved in smuggling. The two, who were caught while arriving at the Kozhikode airport, are suspected to have frequently smuggled gold from Dubai for the racketeers.

However, DRI and Customs have stepped up vigil and started keeping tabs on staff of government agencies at airports, airline crews and even security personnel. The Central Bureau of Investigation is also snooping around for the collaborators of smugglers.

>basheer.kpm@thehindu.co.in

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