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| title | chunk | source | category | tags | date_saved | instance |
|---|---|---|---|---|---|---|
| 2020 Kerala gold smuggling case | 1/3 | https://en.wikipedia.org/wiki/2020_Kerala_gold_smuggling_case | reference | science, encyclopedia | 2026-05-05T14:10:48.154507+00:00 | kb-cron |
On 5 July 2020, 30 kilograms (66 lb) of 24 carat gold worth ₹14.82 crores was seized by Central Board of Indirect Taxes and Customs at Thiruvananthapuram Airport from a diplomatic bag that was meant to be delivered to the UAE Consulate in Thiruvananthapuram. M Sivasankar, the principal secretary to Kerala CM Pinarayi Vijayan, was suspended and removed from the post after preliminary inquiry confirmed that he had links with Swapna Suresh, one of the accused in the National Investigation Agency (NIA) probe.
== Background == Gold smuggling was rampant in India until liberalisation, which repealed The Gold (Control) Act, 1968 that prohibited the import of gold except for making jewellery. In the 2011–12 period India's current account deficit burgeoned to 4.2% of its GDP. This was due to high prices of oil and gold, which the country imported in huge volumes. The government of India in response to this made a series of hikes in the import duty of gold. This created a lucrative ground for an upsurge in gold smuggling to the country from abroad, predominantly the Middle East. While most of the smuggled gold enters India from the UAE, it is also smuggled through the porous borders India shares with Nepal, Bangladesh, Bhutan, and Myanmar. Multiple cases of gold smuggling were reported from Kerala in the past and in its initial days in the 1970s the smuggling was lower volumes transported through sea. However post 2012 there was a surge in gold smuggling into Kerala through airports. The prominence of Kerala Jewellery industry and high domestic demand for gold jewellery in state following Gulf migration by Keralites along with quick and high returns on engaging in Gold smuggling propelled Gold smuggling through Kerala. The smuggling and interception were more rampant through Calicut International Airport due to huge passenger traffic between the town and Gulf Cooperation Council nations which made concealment easier. In financial year 2013–14 the gold smuggled through Calicut airport was 70 kg in the previous year it was 12.5 kg only. The smuggling of gold using carriers were rampant in other nearby airports in region too such as Mangalore International Airport, Coimbatore International Airport, Cochin International Airport, Chennai Airport etc. During the 2018–2019 fiscal year, customs had seized about 251 kg of gold from various airports in Kerala. In 2019–20, 540 kg was seized which was more than double compared to that of the previous year. About 802 cases, related to gold smuggling, were also registered in the same year. The various reports by Kerala Police suspect Koduvally town as a major hub used by smugglers. It is roughly estimated that around 70% of Gold that is smuggled through Calicut International Airport is handled by various players in the town. Over a period of time the smuggling activities has graduated from an economic offence to serious security threat to country, due to alleged cases of development of nexus between Smugglers and Non-state actors predominantly extremist organisations and violent mafia. It is also alleged that big jewellery brands from Kerala engage in trading smuggled gold by using small bogus outfits as front.
== Incident == On 30 June 2020, acting on an anonymous tip, the Customs officials at Trivandrum International Airport detained a diplomatic baggage from Dubai on suspicion of smuggling. Since the bag came under diplomatic immunity, opening it without following procedures was not possible, especially since a call claiming to be from secretary of the consulate general of the UAE consulate in Thiruvananthapuram asked the Customs to release the baggage. On Sunday, 5 July 2020, the bag was opened in the presence of a senior officer from the high commissioner's office in Delhi and the consulate official whose name was on the baggage, to reveal the smuggled gold which weighed around 30 kg. The gold was concealed in baggage consisting of bathroom equipment. Further investigation about the call led the initial inquiry to Swapna Prabha Suresh, an ex-UAE consulate employee and state IT department consultant. The Indian officials said that it was first time in history that such a large scale smuggling attempt happened under the name of a foreign nation's diplomatic office.