This Article is From Nov 05, 2014

Ahmedabad Airport: New Gateway for Gold Smugglers?

Ahmedabad Airport: New Gateway for Gold Smugglers?

Security personnel outside the Ahmedabad airport

Ahmedabad: With a sharp rise in the number of gold smuggling cases detected at the Ahmedabad airport, security agencies fear that the city, considered to be the commercial capital of Gujarat, could perhaps be the new emerging entry point for illegal inflow of gold into the country. In the last 10 months alone, gold worth Rs 15 crore has been seized at the Sardar Vallabhbhai Patel International Airport.

Ironically, the increase in gold seizures - a dozen in the last 10 months - made by the Air Intelligence Unit of the customs department has come despite a steady fall in the price of the metal in the domestic market. India is the world's second-biggest consumer of the precious metal.
Interestingly, ingenious methods are being used to smuggle in gold into the country.

"Induction cooker, emergency lights, radio, toys, vacuum cleaners... smugglers use these gadgets to conceal gold... the interesting part is that when you plug in these gadgets, they work normally, making detection extremely difficult," said Capt. Sanjay Gehelot, Customs Commissioner, Ahmedabad.

Customs officials say gold is generally smuggled from Gulf nations where prices are cheaper than in the Indian bullion market.

For example, 10 grams gold is sold at around Rs 22,000 in the Dubai bullion market, while its price hovers around Rs 26,500 in India. This translates into Rs 45,000 less for 100 grams of gold in Dubai as compared to India. Gold dealers in India blame the tax structure for the increased cost.

"There is a 10 per cent custom duty... added to it is 2-3 per cent VAT and other premium that pushes up the prices by 12-13 per cent. If you consider a kg of gold, it amounts to about Rs 1.5-2 lakh difference in Gulf markets... that's tempting for smugglers," said Shantibhai Patel, President, Ahmedabad Jewellers Association.

Officials also point to the fact that smugglers could be choosing airports in smaller cities where security isn't as high as in the bigger metros to bring in gold illegally, something that should be a major cause for concern for authorities.
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