| Date: |
11-08-2012 |
| Subject: |
Smugglers may cash in on dip in gold imports |
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NEW DELHI: Even though bullion traders are expecting gold imports to nosedive by 40% this year on the back of prohibitive prices of the yellow metal and an uncertain monsoon, financial intelligence agencies believe the demand has not decreased so drastically and that the shortfall in the figures may be being filled in by smuggling.
With duty on gold increased to eight times in this year's budget (from 0.5% to 4&), agencies believe the new policy is encouraging gold smuggling to some extent. The Directorate of Revenue Intelligence (DRI) on Thursday arrested a person at Jaipur airport with 2.5 kg gold hidden in his socks. Investigations revealed that the accused has smuggled gold 20 times in the past few months alone.
"The case is a clear example of a spurt in gold smuggling this year. The fact that the accused has made 20 such trips in the past one year shows there is a demand for smuggled gold," said a DRI official.
Source : timesofindia.indiatimes.com
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