KOCHI: There is more to gold smuggling in Kerala than meets the eye. Beyond just trafficking the precious metal, the dubious affair has sparked violent clashes, kidnapping, and even murders in certain instances. But several questions linger: How do so many of the carriers evade customs checks? How do hijackers come into the picture? And how do the police intercept the carriers who have escaped the customs?
The allegations raised by CPM-backed MLA P V Anvar has turned the spotlight on the disturbing nexus formed allegedly between the police and the gold smuggling racket spread across the state.
Central to these operations are the infamous ‘pottikkal’ gangs, who intercept and decamp with the gold after the smugglers have evaded the customs checks at airports. With four international airports in Kerala — Thiruvananthapuram, Kochi, Kannur and Kozhikode — acting as gateways, the state has become a lucrative hub for gold smuggling worth several crores of rupees annually, say top officials.
According to sources, the ‘pottikkal’ (literal translation means breaking, and in this case, hijacking) gangs operate by robbing the gold from carriers somewhere outside the airports. These gangs ambush the vehicles carrying the smuggled gold and seize it. In some instances, however, it is the police who take the carriers and the gold into custody.
Yet, only a fraction of the gold is reported in official records. And the smugglers are charged under minor offences, such as possession of stolen property, enabling them to secure bail easily. Anvar’s revelations expose these operations.
Now comes the catch. The police have no powers to seize gold smuggled outside airports. Under Section 102 of CrPC, they must take custody of the contraband and refer the case to the customs. Instead, the police, perhaps with the help of insiders in the customs, get information on carriers. Only a small portion of the seized gold is produced before the court, and the remaining chunk is shared among the colluding officers and the gangsters, sources said.
In one notable incident, a 25-year-old man arrived at the Kozhikode airport carrying 12 kilograms of gold. Despite going undetected at customs security checks, he was intercepted and arrested by the Kerala Police, who received widespread praise on social media. However, a police insider revealed to TNIE that the operation was pre-planned, with hidden motives.
“Corrupt customs officials deliberately allowed smugglers to go through undetected, only to tip off specific police officers who then seized the gold,” the officer said.
By doing so, the gold could be quietly siphoned off in corrupt deals, rather than being fully accounted for in the court.
“That the gold was smuggled in amid such well-equipped security systems can only be described as a miracle. It strongly suggests that the customs department is turning a blind eye during security checks and are colluding with certain police officers,” the officer said.
With tip-offs from the customs, the police officers move in, apprehend the smugglers and seize the gold. “It’s all about money. If the customs arrests the smugglers, they must officially file charges and present the seized gold in court. But when the police take them into custody, there’s a chance some of the gold disappears through corrupt deals,” he added.
Another police officer said that the arrest, seizure and the subsequent legal proceedings have significant loopholes. “The arrest of smugglers and the seizure of gold within airport premises is the responsibility of the customs. The involvement of the police in such cases should be questioned and addressed. It also reflects a failure on the part of airport authorities,” the officer said.
Further complicating the issue is how the seized gold is presented in court. According to the officer, the gold is often altered into different forms, like biscuits or coins, reducing the original quantity. Moreover, the police have no designated staff or budget for the handling of gold seizures. “They rely on goldsmiths, paying them with a portion of the seized gold,” he said.
As a result of all that, the amount of gold produced before the magistrate is significantly lower than the actual amount seized.
“This alteration benefits the smugglers too as the altered form weakens the charges against them, often leading to the court dismissing the case and returning the seized gold,” the officer said.
However, the figures available with the Kerala Police tells a different story: A total of 147.79kg of gold has been seized and 188 cases of gold smuggling registered over the past five years. The largest haul occurred in 2022, with 80kg of gold confiscated in 98 cases. In 2023, this figure dropped to 49kg across 61 cases. This year, 18kg has been seized so far.
Notably, only two cases were reported in 2020 and just one in 2021. Interestingly, gold has been seized in areas like Kasaragod, Wayanad, Kozhikode Rural, Ernakulam Rural, and Malappuram, but no cases have been reported in Thiruvananthapuram. Malappuram has recorded the highest number of gold seizures and cases, given that the Karipur (Kozhikode) airport, a known smuggling hub, is located in the district.
Last year, the Kozhikode airport authorities seized 298kg of gold valued at nearly Rs 200 crore—270kg by customs and 28kg by police. The scope of gold smuggling extends beyond tax evasion—it feeds the parallel economy. Gold smuggling is closely tied to informal money transfer systems, such as ‘hawala’, and is increasingly being linked to organised crime, including terrorism and money laundering, through the use of digital wallets and crypto-currencies. Former Commissioner of Customs (Preventive) Sumit Kumar, who served in Kochi for several years, said the allegations levelled by Anvar are correct.
“The police have no legal powers to confiscate the smuggled gold. They could file a case under some other charges such as stolen property but not for smuggling. They have to hand it over to the customs and charges under the Customs Act would be invoked,” he told TNIE over phone from Mumbai.
“National figures show a difference of 300 tonnes of gold between local consumption and imports. This difference is made up through smuggling. Kerala is contributing a big chunk to this share,” said Sumit Kumar, who is currently the Principal Additional Director General, Central Board of Indirect Taxes and Customs (CBIC), Mumbai.
During his stint in Kochi, he headed the customs team that probed several sensational cases, the most prominent being the smuggling of gold using diplomatic baggage at Thiruvananthapuram airport. An attempt to attack Sumit Kumar happened at Kalpetta in 2021 while he was returning to Kochi after an official assignment. The trial of the case is under way. With organised syndicates using smuggled gold to transfer funds and fuel other illegal activities, the complexities of this smuggling network grow ever more challenging for law enforcement to dismantle.
“Enforcement of stringent sections would prove a deterrent and discourage people from acting as carriers for a fixed payment,” an officer said. For now though, how the story moves on from here remains to be seen.
Major seizures by police
In December, 2022, the police team arrested a 19-year-old woman passenger smuggling gold worth Rs 1 crore at the Kozhikode international airport.
In January 2023, another gold smuggling team, which included a woman, was caught after being chased in Kozhikode.
In February 2023, a four-member gang was arrested at Areekode, Malappuram, while transporting about one kilogram of gold which smuggled from Doha through Kochi Airport