Explained:
How in Kerala Gold Smuggling Rackets, the Big Sharks always escape
The
decision of the Ministry of Home Affairs to assign the probe pertaining to the seizure of 30 kg of
gold from a diplomatic cargo meant for the UAE Consulate to the
National Investigation Agency is a significant development in the state’s long
history of gold smuggling from the Middle East. Tonnes
of gold have been smuggled into Kerala over the years, finding their way into jewellery showrooms as finished ornaments, evading import
duties and other taxes in the entire course of journey. The Customs and DRI
have seized gold and arrested carriers, but the big sharks who run the
international trade have seldom been brought to book.
According
to Customs sources, the Customs and DRI seized 550 kg of smuggled gold in
Kerala in 2019-20. This was an all-time
record, even though the amount itself would just be a small portion of the
actual gold smuggled into the state. Still, this was 15 per cent of all the
smuggled gold seized in India, sources said. In 2018-19, 401 kg of gold was
seized in the state.
As
per the present market value of gold in India, 1 kg of the smuggled yellow
metal would fetch a profit of Rs 5 lakh on import
duty alone. The tax evasion would continue till the smuggled gold lands in jewellery showrooms as ornaments, thus enabling the dealers
to make huge profits.