A massive gold export fraud at Chennai Airport Cargo has been exposed, leading to the Central Bureau of Investigation (CBI) filing a case against 13 individuals, including five customs officials. The scam, which allegedly cost the Indian government over ₹1,000 crore annually from 2020 to 2022, involved exploiting a government scheme intended to facilitate gold exports.
How the Scam Worked
The accused misused the Duty-Free Import Authorisation (DFIA) scheme. This program allows businesses to import duty-free 24-carat gold bars, with the condition that they are then converted into 22-carat gold ornaments and re-exported.
Instead of following the rules, the fraudsters allegedly:
- Imported genuine gold bars.
- Exported fake, gold-plated brass and copper ornaments.
- Sold the real gold on the domestic market for huge profits.
The Investigation
The racket was first uncovered in 2022 by the Central Revenue Intelligence (CRI) after they noticed discrepancies in shipping documents. Physical inspections confirmed that packages meant to contain gold ornaments were filled with low-quality, fake jewelry.
After the Union government granted permission to prosecute the customs officials involved, the CBI launched a full-scale investigation. So far, they have conducted searches at the Chennai airport, the homes of the accused, and various jewelry businesses. They have also seized key documents and inspected the equipment used to test gold purity.
CBI sources believe the case highlights major vulnerabilities in customs checks and that more individuals may be implicated as the investigation continues.