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DRI Officials in Mumbai Bust Big-Ticket Gold Import Racket

The directorates of revenue intelligence (DRI) official have busted a gold import racket, with metal valued at about Rs. 1,000 crores, in Mumbai. The buyers of which, the DRI officials have estimated the duty evasion at about Rs. 338 crores, and arrested two persons on Saturday, the court has remanded them in judicial custody.

Acting on a tip-off, the DRI officials seized a 100kg consignment of Gold Potassium Cyanide (GPC) on Friday with a declared value of Rs. 32 crores at Mumbai’s air cargo complex. GPC is also known as Potassium dicyanoaurate and its primary application is in the elect tic gold plating of metals.

The seized consignment was being exported to Dubai by a Mumbai based firm. The receiving entity at Dubai was also a closely linked entity to exporters, the DRI said in a press release.

The men associated with the racket claimed that the GPC they tried to export was made out of the gold they imported duty-free for re-exports after value addition. The government policy allows such duty-free import of valuable inputs to encourage export and earn foreign exchange.

The Mumbai-based exporter, the press release said, never manufactured any product for export out of the gold his firm imported. Instead, it melted and recast the gold and sold the pieces to jewelers looking for such tax-evaded places of yellow metal.

The buyers, DRI officials said, are suspected to be spread across big cities including those in the South, and they are also looking o track down such illicit transactions. S-ET

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