The story of gold: Economy and national security
By: Thomas, K.V
.
Material type: 
BookPublisher: The Indian Police Journal Description: 68(2), Apr-Jun, 2021: p.29-43.Subject(s): Current account deficit (CAD), Import duty, Smuggling syndicates, Modus operandi, ‘Hawala transactions’ Parallel economy, ‘Terror-financing’ gold monetization scheme. Enforcement mechanisms
In:
The Indian Police JournalSummary: There is a great saying in Malayalam ‘Kanakammoolam Kaminimoolam kalaham palavidhamula kilsulabham’ which means that conflicts are aplenty in the world due to women & wealth. In the Indian context, the yellow metal gold is closely intertwined with wealth and women, as it is an essential component of wealth and an object of great attraction for women. That is why, India is the world’s second biggest consumer of the precious metal with an annual consumption varying from 800-900 tons. Around 98 per cent of this gold is imported. The gold which is the common man’s most preferred investment has made a direct contribution of more than $30 billion to the Indian economy. But the import of gold has led to the higher Current Account Deficit (CAD) and Balance of Payment (BoP) problems in our Economy, which to a great extent, could be checkmated by increase in Import duty of gold. One major fall out of the increase in import duty was the steady spurt in gold smuggling especially by organised smuggling syndicates mainly operating from the United Arab Emirates (UAE). The inflow of large quantity of smuggled gold to India using ‘hawala’ and ‘money-laundering’ mechanisms has created a parallel economy. The smuggling syndicates were found using different modus-operandi and ingenious techniques including use of diplomatic channels. A more serious challenge to enforcement agencies is the linkages of such syndicates with terror and extremist groups and the ‘terror- financing’ by smuggling.The paper examines the role of police in such matters and underlines the need of better collaboration with other stake-holders in the field.To meet such challenges, the paper comes up with a few suggestions which inter-alia include: rationalization of importexport duties of gold/gold jewellery; strict adherence to ‘due diligence guidelines’ by all companies and importers engaged in gold trade; better coordination and synergy among enforcement agencies dealing with economic offences and up-gradation of their technical and manpower resources . – Reproduced
| Item type | Current location | Call number | Vol info | Status | Date due | Barcode |
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Articles
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Indian Institute of Public Administration | 68(2), Apr-Jun, 2021: p.29-43 | Available | AR126186 |
There is a great saying in Malayalam ‘Kanakammoolam Kaminimoolam kalaham palavidhamula kilsulabham’ which means that conflicts are aplenty in the world due to women & wealth. In the Indian context, the yellow metal gold is closely intertwined with wealth and women, as it is an essential component of wealth and an object of great attraction for women. That is why, India is the world’s second biggest consumer of the precious metal with an annual consumption varying from 800-900 tons. Around 98 per cent of this gold is imported. The gold which is the common man’s most preferred investment has made a direct contribution of more than $30 billion to the Indian economy. But the import of gold has led to the higher Current Account Deficit (CAD) and Balance of Payment (BoP) problems in our Economy, which to a great extent, could be checkmated by increase in Import duty of gold. One major fall out of the increase in import duty was the steady spurt in gold smuggling especially by organised smuggling syndicates mainly operating from the United Arab Emirates (UAE). The inflow of large quantity of smuggled gold to India using ‘hawala’ and ‘money-laundering’ mechanisms has created a parallel economy. The smuggling syndicates were found using different modus-operandi and ingenious techniques including use of diplomatic channels. A more serious challenge to enforcement agencies is the linkages of such syndicates with terror and extremist groups and the ‘terror- financing’ by smuggling.The paper examines the role of police in such matters and underlines the need of better collaboration with other stake-holders in the field.To meet such challenges, the paper comes up with a few suggestions which inter-alia include: rationalization of importexport duties of gold/gold jewellery; strict adherence to ‘due diligence guidelines’ by all companies and importers engaged in gold trade; better coordination and synergy among enforcement agencies dealing with economic offences and up-gradation of their technical and manpower resources . – Reproduced
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