Gold seizure by agencies on rise as Lok Sabha election's get closer

Mumbai: The elections are approaching fast, leading to hectic political activities all over the country. However, it’s not only political rallies or debates that have become a regular feature. The election season has also put law enforcement agencies on alert for smuggling attempts and other illegal activities.

The heightened alertness is to prevent the supply of illegal cash, valuables, liquor, etc. that can be used to influence voters. This is evident from the recent seizures of gold being smuggled into the country in large quantities.

Timely seizures

Along with this, the agencies also seized huge amounts of cash in the last few days.

In a major seizure this week, the Directorate of Revenue Intelligence (DRI) seized 40 kg of foreign-origin gold, six kg silver, and Rs 5.43 crores in cash from Mumbai, Araria in Bihar, Mathura and Gurgaon.

Just before this, the customs seized 6.8 kg of gold from two passengers at Jodhpur railway station. They had arrived at Jodhpur from Mumbai. Last month, the Mumbai Airport Customs seized a total of 10 kg gold worth over Rs 5 crores and US $31,500 from 17 passengers who were travelling separately from abroad.

There have been a few more such concerning seizures across the country.

Maximum alert

Sources in the Central law enforcement agencies said that they are on maximum alert considering the upcoming elections.

“The Election Commission (EC) regularly takes review meetings with the nodal officers of all the agencies and police force. In case of poor performance by any agency, the EC may pass strictures and can also recommend action that includes a transfer of post,” said an officer from a Central agency, requesting not to be quoted.

The high margin of profit makes gold smuggling lucrative for the smugglers, as they evade the 15 per cent import duty. It cannot be ruled out that the huge profit earned through smuggled gold can be used by some unscrupulous elements to influence the 2024 Lok Sabha Elections.

Difference between legitimate and smuggled gold

Explaining the difference in the price, Kumar Jain, spokesperson of the India Bullion and Jewellers Association Ltd (IBJA), said that the smuggled gold is Rs 7,000 per 10 grams cheaper than the sold legitimately. This means that smugglers make a profit of Rs 7 lakhs on every kg of gold.

Jain said that the smuggled gold in the market is bought by some small jewellers who make ornaments out of it and sell the same without the hallmark of authenticity.