Gold smuggling shot up last year: Govt

Gold smuggling shot up last year - with seizures worth over Rs 271 crore - on account of price fluctuations, import restrictions and high customs duty, Parliament was informed today.
In 2013, value of the gold bars/biscuits seized amounted to Rs 271.15 crore, Minister of State for Finance J D Seelam said in a written reply to the Rajya Sabha.
The value of gold bars seized in 2012 was Rs 22.01 crore. It was Rs 15.41 crore in 2011.
"The smuggling of gold bars and biscuits is higher in 2013 in comparison to last two years. The increase in smuggling of gold may partly be attributed to the fluctuations of the price of gold, restrictions imposed on import of gold and customs duty rates," Seelam said.

In reply to a question on action taken against persons involved, he said that offenders were arrested and prosecuted as per the provisions of the Customs Act.
He said after adjudication, the seized gold is either disposed of on payment of redemption fine, penalty and applicable duty, or sold through nationalised banks in case the seized contraband gold is absolutely confiscated.

Seelam further said customs department carries out risk analysis, profiling, surveillance, and gathers intelligence on the passengers arriving from abroad.
The scanning of baggage and passenger is done to detect concealed gold, he added.
In a separate reply, the minister said import of gold bars has reduced by 103 tonne from April-December, compared to the 9 month period of the previous fiscal, 2012-13.

He also said government has not put any ban on import of gold except on import in the form of coins and medallions.
"Import of gold is permitted subject to compliance of RBI instructions," Seelam said.
According to a World Gold Council (WGC) report today, India's gold demand in 2013 rose by 13 per cent to 975 tonne compared to 2012, despite government putting in several restrictions to curb imports.
However, for the first time, India lost its tag of the world's largest gold consumer to China, which imported 1,065.8 tonne of the precious metal in 2013, as per WGC.