Customs sleuths at the Cochin International Airport on Tuesday detained a Dubai-bound passenger who attempted to smuggle assorted foreign currencies equivalent to Rs.67.05 lakh.
The passenger, a native of Thrissur, had completed the check-in when sleuths intercepted him on suspicion that he was carrying some contraband. A detailed examination of his checked-in baggage showed bundles of foreign currencies concealed in false cavities.
Based on the finding, the person was booked under provisions of the Customs Act, 1962, read with Foreign Exchange Management Regulations Act, 1999.
Close on the heels of ...
The development, which comes only days after the Directorate of Revenue Intelligence (DRI) sleuths foiled an attempt to smuggle foreign currency worth Rs.1.17 crore, points to a possible revival of currency smuggling operations through Kerala airports after a brief lull.
“Whenever the hawala rate of exchange goes above the rate offered by banks, the smuggling of foreign currency goes up naturally. The bills smuggled this way are intrinsically linked to flow of illegal gold consignments from overseas destinations,” said K.N. Raghavan, Commissioner of Customs in Kochi.
Considering a rise in the flow of greenback bundles through Kerala airports, the Customs is regularly maintaining surveillance over passengers bound for sensitive places such as Dubai, Sri Lanka and Malaysia.
Official data show that the value of foreign currency seized from the three airports has reported a marked increase since the financial year 2011-2012. While the value of currency seized was just Rs.0.47 lakh in 2011-12, it increased to Rs.4.48 lakh next year.
Though it declined to Rs.2.28 lakh in 2013-14, it shot up to Rs.226.77 lakh with the illegal rush of gold. The figure stood at Rs.145.92 lakh till January 31 of the previous fiscal. The number of cases too rose correspondingly from six in 2011-12 to 12 in 2014-15 and was seven in the first 10 months of the previous fiscal.
Confirming the trend, DRI sources said the business of smuggling of foreign currency was prone to fluctuations in the currency exchange market. “Funding illegal gold using foreign currency enables the racketeers to also take advantage of the fluctuations in the currency market,” they said.
Meanwhile, official sources said the back-to-back seizures could only be the tip of the iceberg as the actual amount being sent through this route could be several times higher, based on a back-of-an-envelope assessment that only a certain per cent of smuggled items are seized by the enforcement agencies.
