Authorities seize 175 kg of illegal gold in India

February 20, 2009

Commodity Online
NEW DELHI: India’s revenue authorities have recovered big quantities of illegal gold jewellery and gold coins, supposedly imported from Dubai through smuggling route.

India’s Directorate of Revenue Intelligence (DRI) on Friday said they have detained a 175 kg of gold jewellery from export processing units in the outskirts of capital New Delhi. Authorities also recovered 200 kg of ball bearings and other metal scraps that were declared as export of value-added gold jewellery.

Officials said the export processing units which enjoy tax concessions from the government are using smuggled gold for processing.

”These export processing zones are getting lots of gold imports from Dubai and Singapore. Our investigations lead us to believe that Indian jewellery traders in Dubai and Singapore are routing gold to these zones,” an official told Commodity Online.

He said a large quantity of gold jewellery was being imported for the domestic market through allegedly dubious means. The companies that have been raided by the revenue authorities had the licence to import old ornaments for re-melting and re-making but were importing latest branded jewellery and exporting back metal scraps and not the "value-added" jewellery.

One of the agents arrested by the DRI in Mumbai has allegedly confessed to diverting more than 400 kg of gold jewellery imported for SEZ units for value-addition in the domestic market in the last one and a half years.

DIR investigations have also revealed the role of an Indian running a jewellery shop in Dubai, considered to be the mastermind in the racket. Gold jewellery imported for the domestic market attracts a duty of approximately 13.5 per cent of the value of the consignment.

With gold prices now touching historic rise of around Rs 15,600 per 10 gm, the actual value of the seized gold jewellery would run into million Indian rupees.

To buy Hallmarked 999.9 Pure Swiss Gold Bars, Gold Bullion, Gold Ingots & 916 Gold Coins in Singapore or convert your 916 Physical Gold to physical 999.9 Pure Swiss Gold Bars, Click on Buy Gold to find out more. You may Sell Gold to us too.

[ Back To Home ]

[ Site Map ] [ Terms & Conditions ] [ Disclaimer ] [ Contact ] [ How To Link To Us ] [ Gold Directory ]

Buy Gold & Sell Gold - Singapore Gold Bullion Dealer