The Directorate of Revenue Intelligence arrested Kannada actress Ranya Rao at the Bengaluru International Airport after she was found in possession of 14.8 kg of gold, officials said on Tuesday.
Following her arrest on Monday night, she was presented before an economic offences court, which remanded her to 14 days in judicial custody, they added.
According to officials, Rao had arrived from Dubai on an Emirates flight and had been under surveillance due to her frequent international travel.
Investigators revealed that she had allegedly smuggled the gold by wearing a significant portion of it and concealing gold bars in her clothing.
Authorities grew suspicious after noticing that she had travelled to Dubai four times in 15 days, prompting a targeted operation upon her return.
Preliminary investigations suggest that the actress may have attempted to use her connections to bypass customs checks.
Reports indicate that upon landing, she allegedly claimed to be the daughter of Karnataka's director general of police and contacted local police personnel to escort her home.
Officials are now probing whether any law enforcement officers, including her IPS relative, were aware of her activities or were misled into assisting her. After her arrest, Rao was taken to the DRI headquarters in Bengaluru's HBR Layout for questioning.
Authorities are investigating whether she was acting alone or was part of a larger smuggling network operating between Dubai and India.
Rao, known for her role opposite Kannada superstar Sudeep in Maanikya (2014), has also appeared in a few other South Indian films.