Gold smugglers trust foreign nationals as ‘carrier’ to bring large consignment in India

As prices of gold reach a new high, Directorate of Revenue Intelligence (DRI) has noticed a new trend, usage of foreign nationals as carriers for smuggling gold into India.

In its latest bulletin for the period October 2024 to March 2025, the agency said: “A new modus operandi has also emerged, involving foreign nationals smuggling gold into India in high quantities.” 

Directorate of Revenue Intelligence (DRI), under the Central Board of Indirect Taxes and Customs (CBIC), is the apex agency of the Indian Customs in combating smuggling in India. It enforces the provisions of the Customs Act, 1962 and over fifty other allied Acts including the Arms Act, NDPS Act, COFEPOSA, Wildlife Act, Antiquities Act etc.

Observations about the new method were made after recent seizures. On March 06, two foreign nationals (one from the UAE and the other from Oman) were intercepted at Mumbai Airport. A total of 21 kg gold was recovered from them, concealed inside waist belts worn beneath their shirts.

On February 14, three Iranian nationals travelling from Dubai to Mumbai were intercepted. Two of them were found to have concealed 7.14 kg gold under their clothing, acting at the behest of the third passenger.

Similarly on January 25, two Turkish nationals travelling from Dubai to Mumbai were intercepted. A personal search revealed 16 kg gold ingeniously concealed inside the socks worn by the individuals.

At the same time, Indian nationals too are being used for bringing gold in large quantities. On March 03, DRI intercepted an Indian female passenger arriving from Dubai at Bengaluru Airport. Upon inspection, 14.2 kg of gold bars were found ingeniously concealed. The contraband, valued at ₹12.56 crore, was seized and the passenger was arrested. The agency noted that while the air route has been preferred one, the coastal route and land route are also used to smuggle gold in large quantities from neighbouring countries.

In one such case, gold was smuggled from Sri Lanka via the sea route through the Thondi coast in Ramanathapuram District, Tamil Nadu. It was being transported by a person on a bus to Madurai. Once intercepted and searched, a total of 5.54 kg of 24-carat purity was recovered. In another case 7.58 kg gold smuggled from Bangladesh through a road route.

All these are taking place even as the Government in July 2024 budget lowered the import duty to 6 per cent from 15 per cent. However, smuggling is still prevalent with new methods mainly on account of higher prices in the legal market and attractive return. According to NSE’s Market Pulse, gold emerged as the best-performing asset class in FY25, delivering returns of 41 per cent in dollar terms and 33 per cent in rupee terms, closing the year at record highs to over $3,125/oz. In rupee terms, gold prices ended the year at ₹88,946/10 gram.

The rally was driven by heightened investment demand for gold as a safe-haven asset amid rising geopolitical and economic uncertainty, and its appeal as an inflation hedge. A sharp increase in gold purchases by global central banks—aimed at diversifying reserves and reducing reliance on the US dollar—further fueled the surge.

Over the 18 months ending March 2025, gold prices rose by 68 per cent in dollar terms and 54 per cent in rupee terms, significantly outperforming the 20 per cent return generated by the Nifty 50 Index. 

Published on June 5, 2025