Kerala: Enforcement Directorate likely to launch probe into gold smuggling case

THIRUVANANTHAPURAM: The Enforcement Directorate (ED) is likely to launch a probe into the seizure of 30kg gold at Trivandrum international airport which has snowballed into a political controversy in the state.
The agency, which is empowered to probe the case under Sections of Foreign Exchange Management Act, is likely to register a case after the customs files its chargesheet.
Since several jewellers in the state are suspected consumers of smuggled gold, the ED feels that there could be some connection with the gold that has been smuggled in the diplomatic baggage with settling funds using the gold.
Recently, ED had slapped a notice on a major jeweller in the state over a Dubai-based hawala transaction using gold. Sources said in the case of the ongoing probe into the gold smuggling case, the ED may also look into the money laundering angle.
“Once the customs files a chargesheet under section 135 of the customs act, the ED can treat the case as the one for money laundering,” sources said.
The perpetrators of the gold smuggling case are suspected to have committed the crime several times earlier using the same method. Hence, the probe by ED could reach more customers who have benefitted from the smuggled gold.“Mostly, gold is used to settle payments in illegal trade. Many a time, in jewellery shops, legal gold remains unsold. This phenomenon surfaced mainly after demonetisation. At least 30-50% of gold that comes to the state are smuggled and are illegal,” sources said.
Since the international commercial air operations have been suspended due to Covid-19 outbreak, the smugglers are depending on other methods.
“Normally, those who are engaged in such activities will explore other options for continuing their trade. The present case could be one such option. But this could also be a routine mode of operation as it is a safer option due to diplomatic immunity,” a source said.