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DRI Busts Gujarat Gold Racket, 13 Kg Seized Worth Rs 19.41 Cr

The Directorate of Revenue Intelligence broke up a gold smuggling syndicate in Gujarat involving 13.017 kg of foreign-origin gold worth about Rs 19.41 crore.

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DRI Busts Gujarat Gold Racket, 13 Kg Seized Worth Rs 19.41 Cr — GK24 title card

Why in News

On 19 October 2026 the Directorate of Revenue Intelligence said it had dismantled a gold smuggling syndicate in Gujarat, exposing dealings in 13.017 kg of foreign-origin gold worth about Rs 19.41 crore and arresting three persons under the Customs Act, 1962.

The Directorate of Revenue Intelligence (DRI) has broken up an organised gold smuggling ring that was bringing foreign gold into India through two Gujarat airports, Sardar Vallabhbhai Patel International Airport at Ahmedabad and Surat International Airport. Three people have been arrested under the Customs Act of 1962. The dealings uncovered involved 13.017 kg of foreign-origin gold valued at roughly Rs 19.41 crore.

A 42-hour operation

Officers first kept the suspects under watch on the strength of specific intelligence, then carried out searches at several places over 42 hours starting 16 October 2026. The searches laid bare the whole chain, from the carriage of gold by air passengers and its hand-over to local handlers, through an illegal melting unit, to the sale of the metal through a jewellery outlet.

How the gold was hidden

The early findings point to unusual methods of concealment. Gold was drawn into thin wires and coated with rhodium so that it would not look like gold. Some of it was fitted into the inner linings of trolley bags, and some was carried as gold paste packed inside the inner shells of the same bags. Once the carriers were out of the airport the gold was handed to waiting men, passed on through middlemen and taken to an illegal melting facility at Vadodara. The melted metal was then supplied to a jewellery shop in Ahmedabad and sold for cash.

What was recovered

The searches led to the seizure of about 890 grams of gold, along with records pointing to a further 6.41 kg that had already been melted illegally. At the jewellery shop the officers found undocumented foreign-origin gold bars and papers covering dealings in about 5.8 kg of smuggled gold that had moved through a separate handler. That handler was linked to the syndicate's main financier, who is based in Dubai.

Gold in the dealings exposed13.017 kg, about Rs 19.41 crore
Gold seizedAbout 890 grams
Illegally melted gold traced6.41 kg
Melting unitVadodara
Airports usedAhmedabad and Surat
Law invokedCustoms Act, 1962

Why this case is set as a question

The case is a textbook example of a smuggling chain with every link named: the passenger carrier, the handler outside the airport, the intermediary, the operator of the melting unit, the jewellery trade channel and the financier abroad. For revision, keep apart the two laws this agency works with, the Customs Act of 1962 for smuggled goods such as gold and the narcotics law for drug consignments, and remember that the financier in this case was operating from Dubai.

Important Facts

AgencyDirectorate of Revenue Intelligence (DRI)
StateGujarat
Airports usedSardar Vallabhbhai Patel International Airport, Ahmedabad and Surat International Airport
Gold in dealings exposed13.017 kg of foreign origin
ValueAbout Rs 19.41 crore
Gold seizedAbout 890 grams
Illegally melted gold traced6.41 kg
Melting facilityVadodara
Financier based inDubai
Law invokedCustoms Act, 1962
ArrestsThree persons

Exam Point of View

Remember the agency (DRI), the state (Gujarat), the two airports used (Ahmedabad and Surat), the quantity and value (13.017 kg, about Rs 19.41 crore), the gold seized (about 890 grams), the melted gold traced (6.41 kg), the city of the melting unit (Vadodara), the base of the financier (Dubai) and the law used, the Customs Act of 1962.

Practice Questions

Q1.EconomyMedium

Under which law were the three persons arrested in the DRI's Gujarat gold smuggling case?

  1. A.The Customs Act, 1962
  2. B.The NDPS Act, 1985
  3. C.The Gold Control Act, 1968
  4. D.The Foreign Exchange Management Act, 1999
Show answer
Correct answer: A. The Customs Act, 1962

Gold brought into the country without declaration and without payment of duty is smuggled goods, so the three arrests in this case, which covered dealings in 13.017 kg of foreign-origin gold valued at about Rs 19.41 crore, were made under that Act.

Q3.EconomyEasy

Which method of concealment was used to disguise the smuggled gold as something other than gold?

  1. A.Gold wires coated with rhodium
  2. B.Gold coins sewn into shoe soles
  3. C.Gold dust mixed with tea leaves
  4. D.Gold sheets hidden in book covers
Show answer
Correct answer: A. Gold wires coated with rhodium

The investigation found that the carriers drew the metal into thin wires and gave them a rhodium coating, which hides the colour of gold, and the same passengers also fitted gold into the inner linings of their trolley bags and carried gold paste inside the inner shells of those bags.

Frequently Asked Questions

How much gold was involved in the smuggling case detected by the DRI in Gujarat?

The dealings exposed involved 13.017 kg of foreign-origin gold worth about Rs 19.41 crore, and around 890 grams of gold was seized.

How was the gold concealed by the carriers?

As thin gold wires coated with rhodium, as gold fitted into the inner linings of trolley bags, and as gold paste hidden inside the inner shells of those bags.

Under which law were the arrests made?

Under the Customs Act of 1962. Three persons were arrested, and the syndicate's illegal melting facility was located at Vadodara in Gujarat.

Sources

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