Vijayawada: Vijayawada Task Force police busted a gold smuggling racket and seized 8.8-kilogramme gold worth Rs 3.2 crore and arrested two people on Sunday at Ibrahimpatnam in Vijayawada.
The officials have identified the arrested persons as Jayesh Jain (48), a native of Mumbai, and P Srinivasa Rao (42), a resident of Vijayawada. Both were under police surveillance for the past few days. The police arrested the duo in Ibrahimpatnam while they were transporting the yellow metal in two bags.
ADCP (Task Force) KVS Rao said that the duo failed to produce any supporting bills as documents to claim the gold. The investigation revealed that the duo illegally procured the gold in the form of ornaments from Mumbai to sell to local jewellery shop owners in Vijayawada at lower than the market price. The Task Force handed the duo and seized gold over to Ibrahimpatnam police for further investigation.
The officials of Income Tax and Goods and Services Tax have swung into action to ascertain how the gold from Mumbai illegally came to Vijayawada.
A senior police officer said that some gangs are involved in gold smuggling since it is easy money. The officer added that a few jewellery businesses in Vijayawada have been supporting such groups for profit.