In the first week of financial year 2017-18, The Directorate of Revenue Intelligence siezed 14 kilograms of smuggled gold valued at Rs 4.1 crore from a person intercepted at Nagar Bazaar near Dumdum railway station in Kolkata.
As per investigation team, that gold was smuggled into India from Bangladesh from Dubai and then was penetrating inside the country through land route.
The gold smugglers came back in the market post demonetization seeing the profit margin going up day by day.
Immediately after demonetization outright gold smuggling got reduced. But from last 2 to 3 months things have changed on the ground. Network of Hawala has become active with new currency notes, which is now supporting the cash – based gold smuggling business stated DRI official.
As per DRI officials, gold smugglers are now planning to regroup and restart the smuggling of gold into India.
Today, Dubai Market opens with Rs 26,200 per 10 gms against Rs 29308 per 10 gms in Mumbai i.e. a difference of Rs 3100 per 10 gms and Rs 31 lac for one kg which is a big difference for a gold smuggler.
DRI and custom officials are maintaining a close vigil on India’s sea , land and air routes to check resurfacing of gold smuggling.
Profit Margin on smuggling of gold is still quite high. According to the data, around 120 tonnes of gold was smuggled in India in 2016.
It also depends at what rates GST gets implemented from July 2017.If itcomes with higher rates,let say 2-5 percent,than cost of gold would rise and so the differences between international and domestic prices. As a result gold smuggling will shoot up stated Kumar Jain.