New Delhi [India], Dec 5 (ANI): Due to high demand for gold along with import duty on illegal import of gold, gold smuggling has got a boost in India. Apart from being one of the major vehicles of money laundering in the country, gold smuggling also leads to the growth of mafia groups in the country and is a huge drain on the country’s foreign exchange resources, the Directorate of Revenue Intelligence said in a release on Monday. Report.
In the report released by Union Finance Minister Nirmala Sitharaman on Monday – Smuggling in India Report 2021, the government agency said it has always risen to the challenge and over the years has achieved great success in busting gold smuggling syndicates.
The report said that the volume of gold imports in India was quite high to meet the huge demand. India is the world’s second largest gold consumer after China, importing around 900 million tonnes (mt) of gold annually. According to data from the World Gold Council, India’s gold consumption in 2021 is expected to be 797.3 million tonnes, the highest in the last five years.
While India is a negligible producer of gold, the country’s huge demand for gold is met through imports, the agency said, adding that India imports gold dore bars as well as refined gold. In the last five years, India’s import of gold dore bars accounted for 30 per cent of the total official imports of the yellow metal.
Breaking the network of syndicates, multiple carriers, unique modus operandi and innovative methods of concealment, the DRI has seized 833 kg of smuggled gold during 2021-22, the agency said.
The report said that although Switzerland is the largest source of gold bullion entering India, historically gold has been smuggled into India through long air routes from countries in the Middle East. However, the vigilance of Indian law enforcement agencies has forced the gold smuggling syndicate to adopt a new mode of operations and strategies.
According to the report, increased surveillance at international airports has forced a change from the air route to the land route from the Middle East, which is through the China-Myanmar-India borders. Geographically, India has land borders with five countries in the Northeast region, namely Myanmar, Bangladesh, Bhutan, Nepal and China.
The government agency said in the report that the geo-strategic location and the presence of China and other South East Asian countries on both sides has been instrumental in effectively turning Myanmar into a transit corridor for gold smuggling into India.
Investigation of gold smuggling cases booked by DRI reveals that Myanmar has now emerged as one of the major transit points for gold smuggling into India.
Trends in gold smuggling and seizure data show that 73 per cent of the smuggled gold intercepted is brought through Myanmar and Bangladesh. Several international reports suggested that gold smuggled through China into Myanmar is brought into the museum, one of the border towns on the Myanmar-China border.
As per reports, gold enters Myanmar from China, mainly through the border towns of Ruili on the China side and the Meuse on the Myanmar side. The museum is located in Shan State of northeastern Myanmar and Ruili is located in Dehong Dai Prefecture of Yunnan Province. Ruili is also known as the gateway to China in Myanmar.
The smuggled gold is further transported to Indo-Myanmar Border (IMB) locations along the Mandalay-Kalewa route, the report said, adding that India states along Myanmar through a long, dense jungle, Shares a hilly and inhospitable border. of Manipur, Mizoram and Nagaland.
The DRI report states that Manipur and Mizoram are two strategic states on the India-Myanmar border in connection with gold smuggling.
The two identified routes for smuggling gold from Myanmar to India are Muse-Mandalay-Kalewa-Tedim-Zokhawthar and Muse-Mandalay-Kalewa-Tamu-Namphlong-Moreh. The former route is connected to Mizoram in India, while the latter route opens to Manipur in India.
According to the report, the change in the route of gold through IMB can also be attributed to the crackdown on insurgency, leading to well-established routes and a network of carriers engaged in smuggling arms into the lucrative world of gold smuggling. found. In addition, the existence of scattered dormant gold mines in Myanmar and the potential unaccounted gold mining in many places aid gold smuggling syndicates. (ANI)
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