Under which law was the smuggled foreign-origin gold seized by the DRI?
- A.The Customs Act, 1962
- B.The Foreign Exchange Management Act, 1999
- C.The Prevention of Money Laundering Act, 2002
- D.The Gold Control Act, 1968
Show answer
Correct answer: A. The Customs Act, 1962
Explanation
The correct answer is the Customs Act, 1962. The release names this statute twice in the same episode near the Indo-Bangladesh border, saying that because the person could not produce documents for lawful possession the gold was seized under the Customs Act, and that he was arrested under the relevant provisions of the same Act. The statute appears again in the case from Chandauli in Uttar Pradesh, where the occupants of a car could not show lawful possession of 22 recovered bars. The other three options name genuine laws that candidates often associate with economic offences, and that is exactly why they have been placed here, but none of them is mentioned in this release. Smuggling of goods across the customs frontier is dealt with under customs law, which is why the Directorate of Revenue Intelligence, functioning under the Ministry of Finance, proceeds under this Act.