New Delhi: In its 'Smuggling in India' 2023-24 report, the Directorate of Revenue Intelligence (DRI) has compiled data on various smuggling cases throughout the year. The report highlights that despite the ongoing efforts of multiple security agencies, smuggling of different items remains uncontrolled. The report also sheds light on the alarming connection between international lottery scams and drug trafficking, pointing out that these scams often target vulnerable individuals. It describes how these frauds prey on people’s financial struggles or isolation, luring them with false promises of large prizes while hiding their true criminal intentions.
It stresses that as a member of the Financial Action Task Force (FATF), India places high importance on combating such illegal activities. In the year 2023-24, the DRI successfully seized goods in violation of the SCOMET and WMD Acts, as well as foreign currency worth INR 12.38 crore across 25 cases nationwide.
In 2023-24, the DRI registered 109 cases involving a total of 8,223.61 kg of narcotic drugs and psychotropic substances. This included 107.31 kg of cocaine, 48.74 kg of heroin, 136 kg of methamphetamine, 236 kg of mephedrone, and 7,348.68 kg of ganja. The report highlights a concerning rise in the smuggling of cocaine through air passenger routes, with cases increasing from 21 in 2022-23 to 47 in 2023-24. The majority of these seizures took place at airports, reflecting the growing trend of using air travel for drug smuggling.
Challenges to Control Gold Smuggling
According to the report, gold smuggling in India follows a "hub and spoke" model. In this system, contraband is first brought into the country and transported to central hub locations before being distributed to various destinations. During the financial year 2023-24, the DRI seized a total of 1,319 kg of gold, with the land route accounting for 55% of the seizures and the air route contributing around 36%. The DRI has also shared valuable intelligence with Customs field formations, resulting in significant gold seizures by these units.
The report highlights how gold smuggling in India has evolved over time. Smuggling syndicates now employ a wide range of "mules," including foreign nationals, families, and even insiders. These syndicates are increasingly using international departure gates, where airport workers and other staff are involved in smuggling gold from transit passengers. Furthermore, there has been a rise in the number of carriers used by these syndicates to transport smaller amounts of gold, which helps reduce potential losses if the gold is intercepted by law enforcement.
The report also notes that airports in certain African and Central Asian countries have become key locations for gold smuggling operations.
Smuggling of wildlife products
From the forests of Assam to the bustling outskirts of Bengaluru, the DRI has been actively involved in seizing illegal wildlife products, especially elephant tusks, and arresting the smugglers behind these operations. In a series of five successful operations, the DRI seized 53.49 kg of elephant tusks. The seizures also included leopard skins, live pangolins and their scales, parakeets, live peacocks, peacock feathers, and Indian turtles, all of which were confiscated by DRI units across the country.
According to the report for the fiscal 2023-24, the DRI initiated 485 import cases, involving illegal benefits totaling INR 5,907.79 crore. The most common offenses included mis-declaration/mis-classification (201 cases), misuse of end-use and other notifications (52 cases), misuse of Free Trade Agreements (FTA) (51 cases), undervaluation (47 cases), and evasion of anti-dumping duties (38 cases). Misuse of the ASEAN-India FTA (33 cases) and Notification No. 50/2017-Customs (27 cases) were also notable issues. On the export side, 27 cases were booked, involving illegal benefits worth INR 123.34 crore.
The report also highlighted the significant smuggling of foreign-origin cigarettes into India, with around 91 million sticks valued at INR 178.82 crore seized. A large portion of this smuggling occurred via the sea route, accounting for 53.4 million sticks. Furthermore, the smuggling of areca nuts into India has emerged as an increasing concern. The rising domestic demand, combined with higher prices driven by import duties and production costs, has made smuggling a more attractive option for illegal traders. It also highlights how India’s geographic location places it at a crossroads for several major drug trafficking routes:
Death crescent
This region, which includes Afghanistan, Iran, and Pakistan, is a key source of heroin smuggled into India. The heroin is transported mainly through the African and Gulf regions, as well as traditional routes via the India-Pakistan border and maritime channels.
Maritime routes
India’s extensive coastline offers traffickers opportunities to smuggle drugs via sea. Instances of drugs being concealed in shipping containers and fishing vessels have been increasingly reported.
Death triangle
Comprising Myanmar, Laos, and Thailand, this area is a major source of synthetic drugs and heroin. These drugs often find their way into India through the northeastern states, where the difficult terrain and porous borders create multiple entry points for traffickers.
Air routes
With the rapid growth of international air traffic, air routes have become a prominent method for drug smuggling. Drugs are frequently hidden in luggage, courier packages, or even ingested by carriers, known as “mules,” to evade detection.
Lottery scams and International drug trafficking
The report sheds light on how international lottery scams often target vulnerable individuals, especially those facing financial struggles or feeling isolated. These scams typically begin with an unsolicited email or message, promising the victim a large lottery or prize win. The scammers work to build trust by engaging in continuous communication and sometimes providing fake documents, making the opportunity appear legitimate. Vulnerable victims, particularly the elderly or those in financial distress, are lured with promises of life-changing sums of money. The scam usually involves convincing the victim to travel to a foreign country under the guise of completing necessary formalities to claim their winnings.
To make the offer seem more enticing and risk-free, the scammers often cover the costs of the trip. Once the victim arrives, they are manipulated further through staged meetings, paperwork, and sometimes small cash handouts to cover minor expenses, all reinforcing the illusion of a legitimate process.
However, the true intention behind these scams is far more sinister. The scammers use these individuals as unwitting mules, tasked with transporting illegal substances or contraband back to their home country. The scam reaches its climax during the return journey, when victims are handed luggage containing illegal items, such as drugs, to deliver to an accomplice of the scammers. Often, the victims are completely unaware of what they are carrying. If caught upon arrival, they face legal consequences, while the scammers remain largely untraceable, ready to exploit the next victim.
Fight against drug trafficking
The report highlights that countries around the world have united to address the challenges of drug trafficking through three major United Nations Conventions: the 1961 Single Convention on Narcotic Drugs, the 1971 Convention on Psychotropic Substances, and the 1988 Convention against Illicit Traffic in Narcotic Drugs and Psychotropic Substances. As an active and responsible member of the international community, India is a signatory to all three of these conventions.
Additionally, during its presidency of the G20 in 2023, India played a key role in ensuring that international cooperation to combat drug trafficking was included in the G20 New Delhi Leaders’ Declaration of 2023, further demonstrating its commitment to tackling this global issue.
Key incidents During FY 2023-24
- DRI seized foreign currency valued at Rs 1.10 Cr. at Kolkata airport attempted to be smuggled out to Bangkok. Two persons were arrested. The currency was
concealed ingeniously in “henna packets” in the baggage of the two persons. - December 17, 2023, when DRI seized 4,012 grams of cocaine from an Indian national who arrived at Mumbai International Airport from Sierra Leone
- In October 2023, DRI seized a total of 4,500 grams of cocaine from two Indian nationals
- June 14, 2023, cocaine concealed inside thermocol balls was intercepted at the Delhi Courier Terminal from a parcel originating from São Paulo
- On July 2, 2023, cocaine ingeniously concealed in the base of wooden articles was seized at the Mumbai Courier Terminal from a parcel coming from Costa Rica
- March 05, 2024, DRI with the assistance of the Indian Coast Guard intercepted a boat in the deep sea, sailing towards Sri Lanka. Upon searching the boat, 5 bags containing 99 kg of hashish valued at INR 108.90 Cr. were found and seized
- January 07, 2024, DRI intercepted a suspected car at Srikona area of Cachar District, Assam, recovering 7 brick-sized packets containing 64,000 methamphetamine tablets (6.40 kg), leading to the arrest of two persons
- DRI intercepted a passenger who arrived in CCSI Airport, Lucknow from Abu Dhabi on November 04, 2023. A search of the passenger’s luggage revealed
foreign-origin gold ingeniously concealed in layers at the base of three irons. After extraction, 10.48 kg of gold, valued at INR 6.50 Cr., was recovered and seized - DRI intercepted two passengers who arrived in Mumbai from Sharjah on June 03, 2023. During a thorough examination, 8 gold bars with foreign markings, weighing a total of 8 kg and valued at INR 4.94 Cr., were found concealed around their waists
- January 03, 2024, 8 Sri Lankan nationals arriving from Colombo on the same flights were intercepted, and gold capsules in paste form, leading to the
recovery of 11.528 kg, which was concealed inside their body - December 20, 2023, 6 passengers, including 2 Sri Lankan nationals arriving from Colombo on Air India and Indigo flights, were intercepted, leading to the
recovery of 7.51 kg of gold in paste form concealed in their body.
