DRI Sleuths Busted Notorious Gold Import Racket

SEATTLE (Scrap Monster): The Directorate of Revenue Intelligence (DRI) busted a major gold import racket at the Air Cargo Complex in Mumbai. A consignment of approximately 100 kilograms of gold potassium cyanide (GPC), worth INR 32 crores, used primarily in the electrolytic gold plating of metals, was seized during the operation.

The culprits were arrested while trying to export the GPCs, which were falsely claimed to be made out of duty-free imported gold. Upon interrogation, DRI officials found that they were not manufactured out of the duty-free for export from gold which was permitted to import by the company. On the other hand, it melted, recast and diverted the duty-free gold to the local market.

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The GPC was found to be imported by a Gandhinagar, Gujarat-based company, which had no connection with gold business. It was imported from Indonesia under the terms of Free Trade Agreement, thereby availing a 0% tariff concession benefit. The company was found to export the GPC to Dubai, relocate it to Indonesia and again import to India.

The operation is estimated to have led to duty evasion of nearly INR 338 crores. Two persons were arrested in connection with the incident. They have been remanded to judicial custody by the court until 21^st July.