Smuggling of gold from CSEZ, 4 arrested

Customs Preventive Commissionerate today arrested four persons, including the owner of a unit functioning at the Cochin Special Economic Zone, for allegedly removing and selling large quantity of gold meant for export and seized gold ingots and ornaments worth about Rs 5.71 crore.
Those arrested include owner of Ashwin Gold Sanjay Nikam (30), Jaykumar and Saji, who do import and export consultancy, and Jeeson, an accountant with a jewellery shop where the gold was sold.
The four had been arrested under sect 104 of Customs Act, 1962, Customs Commissioner Dr K N Rghavan told reporters here.
The gold, totally weighing 21.95 kg, was sold to three jewellers -- Kallarakkal Jewellery, Angamally; Southern Jewellery and Smijo Jewellery, both Thrissur, and the owners of the jewelleries have also been summoned for questioning, he said.

Based on specific intelligence that a unit in CSEZ was removing gold imported duty free to domestic tariff area, customs officers visited the CSEZ.
On verification, it was found that gold weighing 10.5 kg imported by Ashwin Gold on Aug 8, had been removed clandestinely after it arrived in CSEZ.

Further investigations revealed that the said gold had been removed to the premises of two jewellers at Thrissur- 6.5 kg to one jeweller and four kg to another.
Investigations also revealed that the unit in CSEZ had removed 10 kg of gold received earlier clandestinely to premises of another jeweller at Angamally.

Raghavan said immediate follow up action led to recovery of the gold which had been converted into ingots and ornaments. Statements have been recorded from the owner of the unit within CSEZ and persons who had assisted in the removal of gold.
Gold is permitted to be imported into CSEZ on condition of export of jewellery/ ornaments with value addition.
The conversion of gold bar to jewellery was to be done within CSEZ itself and any movement to the domestic market can be done only with permission of CSEZ officials.
In this case, the onwer of the unit had concealed the gold imported duty free inside his car and smuggled it outside, Raghavan said.