Don't Kill Golden Goose Chasing Smuggling Masterminds
December 05, 2024 09:47Harsh Kumar/Business Standard
Revenue Secretary Sanjay Malhotra on Wednesday told officers of the Directorate of Revenue Intelligence (DRI) to nab the masterminds behind smuggling rackets, but keep the interest of the economy in mind before issuing high-pitched notices in commercial fraud cases.
"We are here not only for revenue, but also for the whole economy of the country. So, if in the process of garnering some small revenue, we are hurting the whole industry, or the economy of the county, it is certainly not the intent. Revenue comes in only when there is some income, therefore, we have to be very cautious so that we do not, as they say, kill the golden goose," Malhotra said while speaking at the 67th foundation day of the DRI.
The revenue secretary said it is vital for the department to upgrade skills and manpower to adapt to the technological changes. Officers should focus their energy on big fish and masterminds, and bust syndicates in smuggling operations, he said, cautioning that they have to be "very careful" while taking action against traders or businesses involved in potential commercial fraud cases.
There could be a technical nature of some tax demands and classification disputes rampant across the industry on some goods, which could lead to very high-pitched demand notices, he said.
According to the Smuggling in India report released by the DRI on Wednesday, India has seized 4,869.6 kg of smuggled gold in the last financial year (FY24) as smugglers continue to exploit porous borders, particularly in the North East, and high domestic demand.
The report said India has become a major destination for illicit imports of precious metals, with gold and silver predominantly originating from Gulf countries such as the United Arab Emirates and Saudi Arabia.
The report also highlighted that in FY24, the DRI detected import fraud of Rs 5,908 crore. The Myanmar border remains one of the most active routes for illicit gold, with the country serving as both a source and transit hub.
Smuggling syndicates use well-established corridors such as Tamu-Moreh in Manipur and Zokhawthar in Mizoram, taking advantage of the challenging terrain and minimal border controls, the report said. Tamu and Rih are border towns in Myanmar that also serve as legal trading routes.
Gold from Myanmar often passes through transit hubs like Muse, Ruili and Mandalay before entering India, the report said.
'Manipur and Mizoram have become critical hotspots for gold trafficking, as evidenced by frequent seizures. The DRI has significantly intensified its surveillance along these routes,' it said.
According to the Central Board of Indirect Taxes and Customs, which runs the DRI, 6,425 cases of smuggling were registered in FY24.
Another prominent smuggling corridor runs through Nepal, where smugglers use train and road networks to move gold into major Indian cities. In West Bengal, the Siliguri corridor continues to be a choke point for gold entering mainland India, the report said.
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