Skip to content
Search

Latest Stories

Election seizures in India slow Gold smuggling

INDIA'S gold smugglers have slowed their operations over worries their shipments will be caught up in seizures of cash, bullion, booze, and drugs that are aimed at controlling vote-buying in the country's national elections, industry officials said.

In India, political parties and their supporters often offer money or goods in exchange for votes. The Election Commission, which monitors the polls, tries to prevent this by setting up highway checkpoints to seize cash, gold, liquor and other high-value items that candidates avoid mentioning in their expenses due to a cap on the amount they can spend.


Last month in Mumbai, in one of the biggest seizures since the current election was announced on March 10, the Directorate of Revenue Intelligence seized 107 kilogram of gold, worth about £3.31million.

The slowdown in smuggling has boosted gold imports at banks in the world's second-biggest buyer of the precious metal, allowing them to charge a premium over global prices.

"After a big seizure in Mumbai, smuggling has gone down drastically. Grey market operators don't want to take the risk during the election period," Anantha Padmanabhan, chairman of All India Gem and Jewellery Domestic Council (GJC) said.

India's Election Commission as of April 14 has seized £278.68m in cash, liquor, gold, drugs, and other goods over the last month, more than double the £131.33m confiscated in the last election cycle in 2014.

The random checking of vehicles and seizures have made it nearly impossible for smugglers and other "grey market" operators to move cash and gold from one place to another, said the head of the bullion division at a Mumbai-based private bank.

"This is helping banks. Our gold business has improved in the last few weeks," he said.

Gold smuggling surged in India after the government raised the import duty to 10 per cent in August 2013.

Grey market operators - businesses that smuggle gold from overseas and sell it in cash to avoid the duties got a further boost in 2017 when India imposed a three per cent sales tax on bullion.

The grey market operators can sell gold at discounts to prevailing market prices as they evade paying the 13 per cent tax, said Harshad Ajmera, a gold wholesaler in Kolkata.

But this week, even in the cash market, gold was sold at the market price, said Ashok Jain, proprietor of Mumbai-based gold wholesaler Chenaji Narsinghji.

Dealers were charging a premium of up to £1.91 an ounce over official domestic prices, the highest in nearly five months.

Up to 95 tonnes of gold was smuggled into India in 2018, according to the World Gold Council, although India's Association of Gold Refineries and Mints and other industry bodies put the figure at more than twice that.

Election Commission rules makes it mandatory for people to show valid documentation if they are carrying more than £551 in cash, or else it could be seized.

This rule has been hurting the jewellery industry, especially in rural areas where more than half of gold is bought in cash.

The limit of £551 is "too low for the jewellery industry" as even a small 20-gram (0.7-ounce) gold chain costs more than that, said Padmanabhan of GJC.

"Demand has fallen due to the cash restrictions. We have requested that the Election Commission raise the limit."

(Reuters)

More For You

Starmer faces revolt as welfare bill vote sparks Labour uproar

Keir Starmer speaks during a reception for public sector workers at 10 Downing Street in London on July 1, 2025. (Photo by CARL COURT/POOL/AFP via Getty Images)

Starmer faces revolt as welfare bill vote sparks Labour uproar

PRIME MINISTER Keir Starmer faced the most serious test of his leadership on Tuesday (1) as his government’s flagship welfare reforms came under fierce attack from within his own party.

The day was marked by emotional speeches, last-minute concessions, and a deep sense of division among Labour MPs, many of whom said the proposed changes would push vulnerable people into poverty

Keep ReadingShow less
Lucy Letby

Letby, from Hereford in western England, was charged in 2020 after a series of deaths in the hospital's neo-natal unit.

Three senior hospital staff arrested in Lucy Letby case probe

POLICE on Tuesday said they had arrested three senior staff members at the hospital where nurse Lucy Letby was found guilty of murdering seven babies. The arrests were made on suspicion of gross negligence manslaughter.

The investigation was launched in 2023 at the Countess of Chester Hospital (CoCH) in northwest England, following Letby’s conviction and life sentence for killings that took place between 2015 and 2016.

Keep ReadingShow less
food-delivery-getty

Uber Eats and Deliveroo will tighten ID checks, including facial verification, to curb illegal migrant work after UK government pressure. (Photo: Getty Images)

Getty Images

Food delivery platforms to step up ID checks after migrant work abuse reports

FOOD delivery companies Deliveroo, Uber Eats and Just Eat have agreed to strengthen security measures, including facial verification checks, to prevent irregular migrants from working through their platforms, following criticism from the UK government.

The announcement came after the Labour government summoned the three firms for a meeting in response to a report by The Sun which exposed how some migrants were bypassing rules and working illegally in the gig economy sector.

Keep ReadingShow less
David Joseph

Joseph has chaired several BRIT Awards shows and was an executive producer of the Oscar and BAFTA-winning 2015 documentary Amy.

David Joseph named new CEO of the RSA

THE ROYAL SOCIETY OF ARTS (RSA) has announced the appointment of David Joseph CBE as its next chief executive officer. He will take over the role in September, succeeding Andy Haldane.

Joseph previously served as chairman and CEO of Universal Music UK for 17 years. During his time at the company, he oversaw its transformation into a global exporter of British music and worked with several major international artists.

Keep ReadingShow less
Labour Rift Deepens as MPs Prepare for Crucial Welfare Bill Vote

People take part in a protest against disability welfare cuts on June 30, 2025 in London. (Photo: Getty Images)

Getty Images

MPs to vote on welfare bill amid Labour divisions

DOZENS of Labour MPs are expected to vote against the government’s welfare reforms despite recent concessions aimed at easing opposition.

The government had initially planned to tighten eligibility for Personal Independence Payment (Pip) but later said the stricter rules would only apply to new claimants from November 2025.

Keep ReadingShow less