NEW DELHI: The Directorate of Revenue Intelligence (DRI) seized 833 kg of smuggled gold worth Rs 405 crore during FY2021-22 and the largest part of this valuable metal came from bordering nation Myanmar, as per the “Smuggling in India Report 2021-22”, which was unveiled by Finance Minister Nirmala Sitharaman on Monday.
Nearly 37% of the total gold seized had its origin from Myanmar, 20% from the Middle East and 7% from Bangladesh. In FY 2019-20, the largest originating country/region of smuggled gold was the Middle East.
In the legal market, gold (24K) price currently hovers around Rs 47 lakh/kg. Beside gold, narcotics, foreign currency, cigarettes and endangered wildlife species were among top smuggled commodities.
According to the report, the quantity of narcotic drugs and psychotropic substances (NDPS) seized in 2021-22 was 28,334 kg.While addressing the 65th foundation day of DRI, the FM asked enforcement agencies to go after ‘big fish’ involved in drug trafficking, saying they need to find who is sending ‘mountains’ of illegal drugs into the country.
She also said that there is a need to enhance technology adoption, working on patterns, data analysis to be ahead of the smugglers and their modus operandi to counter the menace of gold and NDPS smuggling.
The report stated that much of this smuggled gold originated in Myanmar and was smuggled into India through the old Tamu-Moreh-Imphal trajectory in Manipur, which goes through a vast expanse of unguarded but difficult terrain, and the Zokhatwar route in Mizoram.
India, the world’s second-biggest gold consumer after China, imports about 900 MT of gold a year. Gold consumption in India was 797.3 MT in 2021, the highest in past five years, according to the World Gold Council data. Gold smuggling in India is fueled by this huge demand for gold combined with import duty on licit import of gold.
A total of 13 foreign currency cases were booked by the DRI in FY21-22 whose value stood at Rs 11.37 crore. Cigarette smuggling is another area of concern and is on the rise due to high taxes on locally produced cigarettes which makes it 50% pricier than the smuggled ones. The total value of seized cigarettes by the DRI stood at about Rs 93 crore in FY22.