Ranya Rao arrest: Thriving black market for smuggled gold in Bengaluru

Mangalore Today News Network

Bengaluru, March 13, 2025: The recent arrest of Sandalwood actress Ranya Rao who landed at Kempegowda International Airport from Dubai with 14.2 kg of gold bars strapped to her body, only shows that the Government of India’s move to cut import duty on the yellow metal from 15 per cent to 6 per cent last year has failed to check gold smuggling.

Officials with multiple investigation agencies confirmed that there is an active black market thriving for smuggled gold in Bengaluru, Hyderabad, Kerala and Mumbai.

Pointing out that gold in UAE is 4 to 5% cheaper than in India, investigating officers said that smuggled gold is bought by jewellers, businessmen, politicians and real estate players for Rs 100 to Rs 150 less per gram than prevailing market prices in India.

“The whole deal is done with a mere slip of paper and works on trust. This market is called the ‘UNA market’”, an investigating officer said, adding that big jewellers too don’t shy away from buying the smuggled gold.

According to industry insiders, a gram of 24 carat gold in the UAE was priced at AED 350.48 (Rs 8,324 at prevailing exchange rate of Rs 23.75) on Wednesday against Rs 8,632 in India.

They say that the 6 per cent customs duty on gold in such a situation makes bringing the yellow metal profitable only illegally.

Speaking to DH, a jewellery shop owner, who buys gold in bulk, admits, “Buying smuggled gold means that the transaction is out of the GST net. Even if the gold is purchased at Rs 100 to Rs 150 less than the prevailing market prices, it translates to huge profits when large quantities of gold are involved. Jewellers in Bengaluru may buy a gram of smuggled gold at Rs 100 less than the prevailing market prices, in Hyderabad it could be Rs 150 per gram and in Mumbai, Rs 80 per gram. The sellers go to places where they get the best price. These transactions have no bills, no GST and no bank dealings. But money and gold keep changing hands,” said the jeweller.

Another jeweller revealed that to avoid showing bulk payments made via digital mode, software that automatically splits and manipulates large payments into smaller insignificant payments are available and used.

Works on trust

A senior officer who has been involved in cracking and investigating many gold smuggling cases, including the Ranya Rao one, said smugglers are no more the tough anti-social types. Some businessmen have unaccounted bulk money and open businesses in Dubai or other foreign countries to keep cash and gold flowing.

“These businessmen have trusted men and women who act as carriers and make multiple trips overseas to smuggle the gold. Their airfares and lodging expenses are paid, and they get a part of the profits too. These businessmen, who ferry gold through such carriers, instantly get cash on selling it in black market in India,” said the official.

Besides, gold prices have been on an upswing for quite some time. Gold bought at only Rs 100 to Rs 150 less can yield huge profits when the yellow metal prices go up. “Gold is the most trusted investment. Hoarding is always a better option than keeping trunkloads of cash or investing in land. Once you get into the cycle, it has to keep going. Money keeps getting reinvested,” said the official.

Gold is smuggled into India by air or sea, but within the country, it is moved on road. “We have caught people concealing gold in specially made cabins in cars, bikes and buses,” said a senior investigating officer.

Is it easy to trace the money trail? “Yes. We use a particular software to trace the trail. If the suspect has compromised the private key (like a password) or seed phrase (like an exact address), we can use that to trace the distribution network,” explains the officer.