Delhi: Demand for smuggled gold stays alive despite crackdowns

A 64-year-old Iraqi national was apprehended at New Delhi’s international airport on August 18 for allegedly attempting to smuggle 1.2 kg of gold into India, according to the Customs Department. The suspect had arrived on a flight from Baghdad when screening raised alarms.

“During X-ray screening of the luggage, suspicious images were detected. The DFMD (Door Frame Metal Detector) check of the passenger triggered a strong alert. A subsequent thorough search of the passenger and his luggage resulted in the discovery of assorted yellow metal, silver-coated jewellery, suspected to be gold, weighing a total of 1,203 grams,” the department posted on X.

The gold was concealed in the passenger’s luggage. Authorities are now examining the purity and value of the consignment while probing possible violations under the Customs Act, 1962.

Cocaine seized at Mumbai airport

In a separate incident at Mumbai’s Chhatrapati Shivaji Maharaj International Airport, customs officers seized suspected cocaine valued at approximately £1.36 million.

“On April 1, based on spot profiling, a passenger arriving from Nairobi to Mumbai via Doha was intercepted by Customs Officers at CSMI Airport. A detailed search of the luggage revealed a white powdered substance, believed to be cocaine, with a net weight of 1,789 grams, valued at approximately Rs 17.89 crore concealed in a false compartment of the trolley bag carried by her,” the press release stated.

The passenger was arrested under the Narcotic Drugs and Psychotropic Substances Act, 1985. Investigations and legal proceedings are ongoing.

Gold smuggling incidents in Delhi

Gold smuggling cases are not confined to airports. In recent years, Delhi has also seen a surge in seizures at railway stations and metro hubs.

On April 30, 996 grams of smuggled foreign gold were recovered from a passenger at New Delhi Railway Station. Earlier that month, on April 11, the Directorate of Revenue Intelligence (DRI) seized 830 grams of foreign-origin gold, arresting two individuals.

On May 8, DRI officials confiscated 3.3 kg of smuggled gold at Lal Quila metro station. In another major bust, 2,158 grams of 24-karat gold, valued at approximately Rs 1.65 crore, were seized from passengers arriving on a flight from Yangon. Officials found 1,788 grams melted into the soles of shoes and 370 grams smeared on the body as gold paste.

This operation, conducted under “Operation Gold Shield,” formed part of India’s wider campaign against smuggling networks, particularly those linked to Myanmar. According to DRI, over 1,200 kg of gold were seized nationwide last year.

Smuggling routes 

According to 2024 DRI data, Delhi alone accounted for 49.67 kg of foreign-origin gold seizures. The Capital is considered one of the more notorious centres for gold smuggling.

Officials trace much of this contraband to Myanmar. A senior Delhi Police officer explained that gold has become the primary contraband smuggled from Myanmar. The gold originates from deposits in Kachin, Kayin, Mandalay, Sagaing, Bago, and Tanintharyi regions, and is often cast into unmarked 166-gram biscuits.

The smuggling chain typically begins in Imphal, before the consignments are routed through Dimapur in Nagaland or Silchar in Assam, then moved by rail or air to Kolkata or New Delhi. The DRI has recorded major seizures in hubs such as Kolkata, Mumbai, Chennai, and Delhi, where demand for high-purity gold, at 99.76%, remains strong.

In 2017-18, customs authorities confiscated 3,223 kg of gold valued at Rs 974 crore. A DRI report estimates that seizures represent only 5-10% of the total trade, indicating an illicit market potentially worth at least Rs 9,000 crore.

Why gold smuggling thrives

Three factors fuel this underground trade. Gold in Myanmar costs Rs 400-500 less per 10 grams than in India. On top of this, India imposes a 10% customs duty and 3% GST on gold, while Myanmar bans the export of gold in raw form. Despite these restrictions, India’s insatiable demand for the yellow metal ensures steady smuggling flows. Some of the smuggled gold is eventually re-exported, with consignments reaching the Middle East.

Border vulnerabilities

The 1,643-km India–Myanmar border, stretching across Manipur, Mizoram, Nagaland, and Arunachal Pradesh, provides natural cover for smuggling operations. Routes such as Tamu–Moreh–Imphal in Manipur and Zokhatwar in Mizoram are heavily used despite the presence of security checks.

Moreh, a small town on the Manipur border, exemplifies this duality. Although projected as a gateway for legitimate trade with Southeast Asia, smuggling remains its dominant economy. A senior DRI-linked official said that low-ranking Myanmar army personnel, working under the influence of ethnic armed groups, facilitate the entry of contraband. Local carriers, along with networks from northern India, particularly Rajasthan, sustain the trade.

Myanmar’s position between India, China, and Southeast Asia has also made it a hub for smuggling of cigarettes, exotic animals, and even high-end drones. Trails from Moreh extend to major cities including Chennai, Mumbai, Pune, and Ahmedabad.

Drugs and reverse flows

Alongside gold, narcotics remain a key part of the smuggling network. High-grade heroin, brown sugar, and synthetic drugs such as “World is Yours” and “Yaba” are sourced from the Golden Triangle, which spans Thailand, Myanmar, and Laos.

Also Read: Contraband mephedrone makes dangerous inroads into Delhi’s drug market

A senior counter-insurgency official noted that Joupi village, near Myanmar, has now become a hub of poppy cultivation, with heroin trafficked into Myanmar in return. Smuggling thrives under the Free Movement Regime, which permits visa-free travel up to 16 km across the border. The largely unfenced and rugged terrain allows locals to evade patrols with ease.

Decline in seizures this year

Despite these entrenched routes, gold smuggling cases have seen a sharp decline this year. Data presented in the Lok Sabha shows that in 2024-25, customs authorities seized 2,600.40 kg of gold in 3,005 cases.

This is a significant fall from the previous year, when nearly 5,000 kg were confiscated across 6,599 cases.