A Tehelka SIT report exposes India’s growing smuggling network involving illicit gold and foreign currency trade, with couriers and untraceable routes turning it into a clandestine industry worth hundreds of crores
On July 5, 2020, customs officials at the international airport in Kerala’s Thiruvananthapuram seized baggage containing over 30 kg of gold valued at around Rs 15 crore. The gold was inside diplomatic baggage addressed to the UAE consulate. The customs officials had acted on a tip-off that the baggage was part of a smuggling syndicate, which was misusing the name of a person with diplomatic immunity. The gold seizure snowballed into a major political controversy that shook the foundation of the ruling Left government in the state, especially after top bureaucrat M. Sivasankar’s name cropped up in the murky affair. The former principal secretary to Kerala CM, Vijayan was suspended from service after his links with prime accused Swapna Suresh surfaced. He was later arrested and granted bail. Swapna Suresh, a former staffer at the UAE consulate, was hired by a private firm to work on a project for the Kerala IT department, which is under Chief Minister Pinarayi Vijayan. The CM’s principal secretary, M. Sivasankar, used to head this department.
During this gold smuggling investigation, another case related to the alleged smuggling of USD 190,000 by a former finance head of the UAE Consulate in Thiruvananthapuram to Muscat in Oman came to light. Commissioner of Customs (Preventive) Rajendra Kumar, in an order issued, imposed a penalty of Rs 13 crore on the former finance head of the UAE Consulate, Khaled Mohamed Ali Shoukry, for smuggling foreign currency out of the country. The order highlighted that the foreign currency was taken out of India without being declared to the customs authorities, in clear violation of regulations.
These gold and dollar smuggling cases in Kerala rocked the country. With the Kerala gold smuggling case accused revealing the involvement of some ‘big sharks’, the opposition Congress-led United Democratic Front and BJP-led NDA stepped up their attack against the Pinarayi Vijayan government.
However, this is not a one-off case of gold and dollar smuggling that has caught attention. Many such cases have repeatedly made headlines in Indian media. But what is the modus operandi? Who are the people involved? Which countries are involved in the smuggling? These are the questions every Indian asks when news of dollar and gold smuggling is reported. To seek answers to these questions, Tehelka carried out an investigation on gold and dollar smuggling in India and got a confession on camera from a man who has been involved in smuggling of the yellow metal and the foreign currency in India for years without being caught by the authorities.
As we at Tehelka decided to get to the bottom of the matter by conducting a sting operation, our undercover reporter met Prashant Singh, a dollar and gold smuggler from Kolkata.
“All XXXX officials get my photo, my passport copy, my boarding pass and the colour of my bag in advance, so that they don’t stop me during my dollar and gold smuggling trip to Bangkok,” said Prashant Singh while speaking to our undercover reporter. Singh hails from Aligarh, Uttar Pradesh. He moved to Delhi years ago and later settled in Kolkata through a relative.
“We have a ‘setting’ with some XXXX officials at the XXXX airport. We cannot conduct illicit gold and dollar business without their help. We rely on them in case of emergencies, so if we get caught, they can rescue us. For this, we pay them money,” said Prashant, who, after settling in Kolkata, learned the art of gold and dollar smuggling before starting his own network for this.
Prashant Singh revealed that he is buying dollars from the black market without showing any documents. He claimed to purchase 25,000 US dollars a day, which exceeds the permissible limit, while evading tax and GST. He also added that he hides the gold and dollars in a place that even the airport X-ray cannot detect.
He disclosed that XXXX airport was the best place for him to smuggle gold and dollars from Thailand. “Although illegal trade of gold and dollars takes place at all major airports, XXXX airport is cheaper for me, unlike XXXX, where only someone with a budget of Rs 50 lakh can engage in this illicit trade,” he said.
Prashant Singh, seeking an investor for his illegal gold and dollar smuggling operations, met our undercover reporter, who was posing as a fictitious investor, at a five-star hotel in Delhi. Accompanied by a middleman, Prashant revealed that his network operates from XXXX airport. He candidly detailed profit margins and trade routes, exposing the mechanics of his smuggling enterprise.
Prashant- Hum kaam kartey hain dollar aur gold mein; aur dono ke profit alag alag hain, agar hum 100 gram latey hain, 50 hazar rupees bachta hai.. 100 gm ki value hui 5-5.5 lakh rupees. Aur dollar mein bhejtey hain 8.5 lakh.. ek poora bundle aata hai…usmein hame Rs 2.25 bachtey hain to wo usmein 25,000 rupees approx bachtey hain.
Reporter- Ye laatey kahan se ho aap gold aur dollar?
Prashant- Ye Thailand se laatey hain. Gold Thailand se latey hain aur dollar India se lekar jaatey hain.
Reporter- Kahan jaatey ho?
Prashant- Bangkok mein.
[This conversation highlights the audacity with which such operations are conducted, revealing a systematic network thriving on weak enforcement. It serves as a stark reminder of the need for stricter oversight.]
Prashant Singh then disclosed the intricate workings of his dollar smuggling operation. He detailed how US dollars are illegally taken from India to Thailand, converted to Thai currency, and sent back to India through the Hawala network. The proceeds are then reinvested in the cycle, using multiple couriers for each leg of the operation. Prashant explained how he maximizes profits by cycling funds and even offsetting operational costs with goods like clothes and electronics brought along during trips.
Reporter-Dollar India se lekar jaatey ho wahan usey Indian currency mein change karwatey ho?
Prashant- Nahi Thai currency mein change karwatey hain. Uske baad hum isko hawala lagwakar India mein laatey hain…India mein paisa return aa jata hai Indian currency mein. To hame sab milakar 20-22 hazar bachta hai.
Reporter- 20-22 hazar rupes kitne par bachtey hain ?
Prashant- Rs 8 lakh per trip. Jaise mein aaj gaya wahan par exchange karwaya aur meine return mare paise, India mein aa gaye. Ab India mein wo bande return mein phir gaya, toh cycling system hai.
Reporter- Nahi.. jo paise hawala se India mein aaye wo phir bahar jaatey hain.?
Prashant- Phir hamara doosra ladka…hum akele kaam to karte nahi hain, to wo paise wapas aa gaye ..to aaj Jitu bhai wapas jayega wo paise lekar. To aaj Rs 25000 ka profit aaya, kal bhi Rs 25 k ka profit aayega..
Reporter- Kitne par 25k ka bataya aapne ?
Prashant- 8.5 lakh par.
Reporter- 8.5 lakh par Rs 25 hazar ka profit aapka.?
Prashant- Aayega aur hum cycling mein isko 20-25 din mein, 2.5 lakh kar detey hain.. ye profit hai.
Reporter- Matlab ek chakker mein Rs 25 thousand to 10 chakker mein 2.5 lakhs ?
Prashant- Haan… ye profit hai aur ticket ka jo nikalta hai, hum saath mein kapda bhi laatey hain, electronics item bhi latey hain, aur bhi bahut sara samaan to hum ticket aur custom us mein kar letey hain.
Reporter- Matlab aap aaney jaane ka kharcha us se nikal letey ho.?
Prashant- Haan
Reporter- To aap ye kiske liye kartey ho ?
Prashant- Abhi mein apne liye karta hoon..pehle mein kisi ke liye karta tha. Lekin abhi mera apna amount ho gaya to mein khud ka lagaya thoda doosre ka lagaya tha, covid mein mera bahut nuksan hua…phir last time maine kaam nahi kiya.
[This conversation reveals the sophisticated yet brazen financial engineering behind Prashant’s operation. It underscores how systemic loopholes are exploited to sustain such high-stakes smuggling cycles, emboldened by minimal deterrents.]
Now Prashant admitted to our reporter that since he is having connections at the XXXX airport, he is buying US dollar from the open market in Kolkata, that too much more than the permissible limit. He sends these dollars to Thailand from XXXX airport illegally and brings the money back to India through the Hawala route. Prashant explained that the Hawala operator only releases the money after he shows a slip to prove his identity. This conversation reveals the mechanics of Prashant’s smuggling operation, highlighting the routes and processes involved in moving illegal currency across borders.
Reporter- Nahi aap ye keh rahe ho dollar ki ek limit hai India se bahar le jaane ki..?
Prashant- India se bahar le jane ki sirf India mein hi limit hai, Videsh waalon ki nahi.
Reporter- Ek bande ki kya limit hai ?
Prashant- Ek bande ki Rs 1500-2000 tak US dollar.
Reporter- Aap kitna le jaatey ho?
Prashant- 15000-20000.
Repoprter- Ye dollar aapke pass kahan se aatey hain ?
Prashant- Hum kharidtey hain local market se…
Reporter- Yahan par Karol Bagh se. ?
Reporter (continues)- Aap kis rate par kharidtey ho ?
Prashant- Hum kharidtey hain, jaise yahan ka rate hai Rs 86..point kuch chal raha hai, kuch uper neeche hota rehta hai, wahan ka alag hai.. state ka farq padta hai. 10 paisa yahan kam ho sakta hai ya wahan badh sakta hai..sab online hi hota hai.
Reporter- Aap Karol Bagh se kharidtey ho dollar ?
Prashant- Nahi mein Kolkata se..kyunki XXXX airport mein hi hamari sab setting hai.
Reporter- Matlab Kolkata open market se aap dollar letey ho?
Prashant- Ji.
Reporter- Usey lekar Bangkok chale jaatey ho via XXXX airport.?
Prashant- Haan.
Reporter- Aur kitne din rehtey ho wahan..?
Prashant- Bangkok mein dekho aaj gaye.. ek din ka stay kiya.. doosre din return.
Reporter- Acha wo jo paisa aata hai hawala se, maan lijiye 10,000 dollar le gaye aap, Indian currency mein kitna hua ?
Prashant- 8.50 lakhs hua.
Reporter- 8.50 hawala se aap India bhej detey ho Indian currency mein. Wo kiske pass aata hai ?
Prashant- Wo aata hai hawala wale ke pass. To uske baad hame ek parchi deni padhti hai, to wo dikhakar hi hame paise miltey hain, jaise hamne Jitu bhai ke naam se lagaya to Jitu bhai jayega..wo card dikhayega usko paise mil jayenge.
Reporter- Bande genuine hai ?
Prashant- Hamare jaan pehchaan ke hai, aaj se nahi kai saalon se, aisa hai, mein to ye kehta hoon agar aap interested ho aap hamare saath Kolkata chaliye, poora system dekhiye, agar aapke pass passport hai..koi dikkat nahi hai bilkul open kaam hai.
[This segment highlights the troubling combination of insider collusion, regulatory failures, and organised networks that support smuggling. It shows how Prashant’s boldness comes from years of getting away with it and a deeply rooted system.]
Prashant Singh now discloses the financial gains made by Hawala operators facilitating his smuggling network. He explained that these operators earn Rs 4,000–5,000 per transaction by marking up rates during currency exchanges. Prashant also admitted to having worked under someone named Sunny in the past, before eventually establishing his own independent operations.
Reporter- Accha, aapne ye paisa de diya.. 8.50 lakh rupees, lekin hawala wale ko kya fayda hua.?
Prashant- Hawala wale ka bhi fayda hai ismein, hawala wala apne rate mein bechta hai.
Reporter- Wo kitne kama leta hai 8.5 lakh mein?
Prashant- Kama leta hoga 2-4 hazar.. 5000 tak.
Reporter- Ek trip mein?
Prashant- Haan one time agar hum hawala lagatey hain to usko 4-5 hazar ka fayda ho jata hai.
Reporter- Pehle aap kiske liye kaam kar rahe they?
Prashant- Pehle mein kar raha tha ek hamare Sunny ji hain.. unke liye, thodi funding meri bhi thi usmein.
[The revelation highlights the profit systems within smuggling networks, where intermediaries also earn consistently. It shows how these networks thrive on mutual benefit and extensive involvement.]
Prashant candidly revealed that his decision to resort to illegal channels for transferring dollars was driven by the desire to evade taxes. He argued that taking the legal route would involve substantial tax burdens, including GST, which would eliminate any profit he might earn.
Reporter- Ye bataiye ismein tax kiska bacha.?
Prashant- Tax dekho, agar hum proper tarikey se jayenge, to poora bill banega, to jo cheez hame 8.5 lakh ki padh rahi hai wo phir hame 8.70 ki padegi, zyada hi padegi, GST milakar.. to jo hamari bachat hai wo sari usmein chali jayegi.
[This exchange illustrates the economic rationale behind Prashant’s actions, highlighting a troubling link between high taxation and tax evasion. It exposes how taxation system can sometimes inadvertently incentivise unlawful practices for financial gain]
Prashant admitted to paying bribes to certain XXXX airport officials to facilitate the illegal transfer of dollars. He explained how the money is concealed to evade detection, even by airport x-ray systems. The conversation sheds light on the intricate methods employed to minimise risk and avoid exposure during such operations.
Prashant- Wo wahan jakar kuch bhi Karen.. wo paise hame equal equal ho gaya. Agar hum yahan se custom ko kuch cut de detey hain, 5000- 3000 rupees….3000-4000 per banda chala jaata hai, usko pata hota hai, magar phir bhi hum us paise ko bahut manipulate karke le jaatey hain, aisa nahi ki jeb mein daala aur chal diye, kyunki risk hota hai, kal ko wo mukar gaya, keh diya mera senior aa gaya tha mein kya kar sakta hoon, isliye bahut manipulate karke le jaatey hain.
Reporter- Jaise 10,000 dollar hain.. usey aap alag alag rakhtey hain?
Prashant- Aisey system mein rakhtey hain ki wo x-ray mein bhi nahi aata.
Reporter- Aisa bhi hai wo x-ray mein aayega bhi nahi.
Prashant- Le jane wale to 30-40 hazar tak le jaatey hain magar hamara itna kaam nahi hai.
[This revelation uncovers the deep corruption behind smuggling and the clever methods used to avoid law enforcement. Strict rules and careful monitoring are required to break these networks.]
As the conversation continued, Prashant revealed another detail. He admitted to paying bribes to officials at XXXX airport, which facilitates his gold and dollar smuggling operations. While similar activities occur at other airports, he prefers XXXX due to the lower financial requirements. Prashant mentioned that he primarily conducts his trade with Thailand, though he once attempted smuggling gold from Dubai to India, which proved too costly. This exchange highlights the corruption and high costs involved in smuggling across airports.
Reporter- To ye sab aap XXXX se hi kar rahe ho.?
Prashant- Kaam mein XXXX se kar raha hoon.
Reporter- Delhi se XXXX ?
Prashant- Delhi se sir bahut badi firm kaam karti hai, aur ache level par kaam karte hain.
Reporter- Matlab Delhi se bhi ho raha hai ye kaam. Aap kyun nahi kar paa rahe Delhi se ?
Prashant- Sir, itni funding nahi hai.
Prashant (continues)- Dekho sir bina officer ke kaam karna to bewakoofi hai. Kal ko koi baat hoti hai to mein bol bhi sakta hoon sir thoda sa dekh lijiye…agar aap letey hain to kahin na kahi riyayat bhi karenge. Wo bhi zaroori hai, Delhi XXXX mein koi 10 lakh.. 50 lakh se neeche baat hi nahi karta. Jitna paise utna hi kaam hota hai aur seedha seedha hota hai.
Reporter- Yahan se bhi.. Delhi XXXX se kaam ho raha hai matlab?
Prashant- XXXX, XXXXX, XXXX, XXXX aisa koi airport nahi hai jahan se ye kaam na ho raha ho.
Reporter- Yehi kaam dollar ka?
Prashant- Dollar ka gold ka…gold mein risk bahut hai.
Reporter- Aap sirf Bangkok se hi kar rahe ho?
Prashant- Haan, beech mein maine Dubai se kiya tha second lockdown ke samay…Dubai bahut expensive hai to hamara nahi bann paya tha.
[This exchange shows how smuggling relies on corruption and careful planning. It highlights how money and strategic choices influence illegal trade routes and the risks smugglers are willing to take.]
Now, Prashant revealed that he is involved not only in smuggling of dollars but also in illicit gold trade from XXXX airport to Bangkok, relying on multiple couriers. He detailed the profitability of the operation, explaining how he uses dollars to buy gold in Bangkok and sells it in India, which yields him substantial monthly profits.
Prashant- Jaise ki hum gold mein kaam karte hain, mein aapko market rate se poora samjha sakta hoon…jaise ki hamne choti si investment se 5 lakh rupees laga diye, 5 lakh ka hamne gold liya, dollar lekar bangkok gaye, par hum hawala nahi kara rahe kyunki hum aage maal kharid rahe hain, us paise ko gold mein convert kiya, 5 lakh ko, 5.5 lakh lagbhag.
Reporter- Yahan se dollar lekar gaye aap?
Prashant- Haan lagbhag 5.5 lakhs.. 100 gm ka rate bata raha hoon aapko
Reporter- Dollar lekar gaye wahan se gold kharida Bangkok mein.?
Prashant- Wahan se hum gold lekar aayenge, India mein bechenge, 60 hazar rupees mein bechenge, jo aaj ka rate hai, 60 hazar rupees 100 gram ke.. hame 50 hazar rupees 100 gm mein bachta hai. Yahi 50,000 ko agar hum 10 baar mein multiply karte hain to hame poori 5 lakh rupees ki income hai poori poori.
Prashant (continues)– 5 lakh mein se agar 1 lakh hum kaat bhi letey hain, to hame 4 lakh rupees ka profit hai mahine ka. Ye hai system. Aur se saman bhi hum manipulate karke laatey hain.
Reporter- kaise ?
Prashant- Kabhi aap chalo mein aapko poora samjhata hoon.
[This conversation sheds light on the mechanics of cross-border smuggling and its lucrative returns, made possible through careful planning and resource manipulation. It also highlights how these operations exploit market differences and vulnerabilities in enforcement system.]
Prashant went on to explain how he smuggles gold through couriers from Bangkok. He mentioned that while individuals can legally bring gold worth up to Rs 50,000 into India, his operations are commercial. He travels back and forth between Bangkok and India, bringing in not just gold, but also clothes, spare parts, and laptops.
Reporter- Gold allowed kitna hai India mein lana ?
Prashant- Genuine to 50 hazar tak hai, aap husband-wife gaye chain kharid li..etc..genuine tareeke se India mein 50,000 tak ka la saktey hain. Jaise 50 hazar ka aapki wife pehen kar aa gayi, to wo aapse duty bharwayenge ya bill mangegey. Aur jo bhi aapki duty banti hai tax ki wo aapko dena padega…par hamare saath kya hai hum commercial hain, hum back to back Bangkok jaatey hain, agar hum aaj Bangkok se aaye to hum ek din ruk kar phir dobara Bangkok jayenge to hum business kar rahe hain..theek hai. Hum wahan se kapda bhi latey hain, bahut saari cheezein bhi latey hain. Spare parts latey hain, laptops latey hain.
[This conversation reveals the methods and frequency of Prashant’s smuggling activities, highlighting the commercial scale of his operations. The scale and frequency of these smuggling operations are alarming.]
Prashant revealed that he had never been caught smuggling gold and dollars because he pays off certain officials at XXXX airport. He explained that the bribes ensure smooth operations, with officers turning a blind eye to his activities. Prashant mentioned that the amounts paid can vary, sometimes it’s a small sum or even a bottle of alcohol, but it can go up to significant amounts depending on the officer.
Reporter- 100 gm gold latey ho kabhi pakde nahi gaye aap.?
Prashant- Dekho sir, sure to har baar nahi hotey, kafi din hamare hotey hain, kafi officers ke bhi hotey hain…to wo madwali ho jaati hai beeche mein, kyunki unko bhi maloom hai, inke haath kaat denge to kya karenge ye log. Kyunki hum daily customer ko dekar nikaltey hain. Agar mein aapko 3000 rupees de raha hoon per chakkar.. to aapko Rs 3000 to aa hi raha hai na. Ab aapko pata hai mein itna la raha hoon, ab koi officer aa raha hain, wo dekh raha hai iska itna maal show ho raha hai. To wahan par kya hoga jama honey ke chances nahi hotey. Paisa dena padta hai, ab ho sakta hai wo officer ek bottle mang le daru ki, ho sakta hai 50 hazar mang le, ho sakta hai 50-60 hazar ya 1 lakh tak mang le.. ussey uper kuch nahi ho sakta.
[This revelation highlights the deep-seated corruption and the ease with which smugglers can bypass security checks with the help of complicit officials. It is a stark reminder of the need for comprehensive reforms and strict oversight to dismantle these illegal networks effectively.]
Prashant disclosed another layer of his operation, admitting that some XXXX officials, on receiving regular payments from him, circulate his details—passport, photo, boarding pass, and bag description—to their team. This pre-emptive communication ensures his safe passage while smuggling gold and dollars into India.
Prashant- Pehle hi passport, photo pahuch jati hai.
Reporter- Kahan ?
Prashant- Custom se. Ye shirt pehne hui hai, ye boarding hai, ye bag hai, ye aa raha hai, poore team mein phel jati hai isko rokna nahi hai.
[This revelation shows how deep the collusion runs, with corruption helping smugglers evade enforcement freely. It’s a troubling betrayal of public trust by those meant to enforce the law.]
Prashant made several chilling confessions to our reporter, one of which was about purchasing US dollars illegally in India. He revealed that he buys $25,000 per day from the black market without any passport or documents, evading all taxes in the process.
Reporter- Accha dollar aisey kharid sakta hai koi, usme koi document ki zaroorat to nahi hoti.?
Prashant- Bill ke sang chahiye to bahut kuch hai…India mein na aap saal mein bas ek baar 10,000 dollar bhej saktey ho. Apne passport mein uske baad aap dobara jaogey to wo nahi denge. Kyunki aapne ek hi baar mein bhej diya.
Reporter- Accha saal mein ek passport par Rs 10,000 aa saktey hain?
Prashant – Sirf 5000.
Reporter- Aur aap kitna letey ho?
Prashant- Sir hame paper chahiye hi nahi, wo kacche mein dete hain, hame kacche mein hi chahiye GST nahi katwana, agar pakke mein chahiye paise account se katenge .
Reporter- Aap passport bhi nahi dikhate honge.?
Prashant- Mein kuch nahi dikhata.
Reporter- Aap kitne le letey ho saal mein?
Prashant- Saal mein ?..mein daily ke 25000 dollar le leta hoon.
Reporter- To bahut aage nikal gaye aap to.
[This conversation highlights the scale of illegal transactions and how easily such illicit activities are carried out while bypassing regulations and taxes.]
Currency and gold smuggling in India is set to cross the thousand crore rupee mark, becoming a thriving underground business. This intricate network, often involving corrupt officials, poses a serious threat to national security and economic stability. Individual carriers, NRIs, and international airline staff have become the preferred means for transporting dollars, pounds, and gold to Gulf and Southeast Asian countries. Prashant Singh, along with his couriers, is one such individual caught on Tehelka’s camera making chilling confessions about his smuggling operations. His revelations open a Pandora’s box, demanding urgent action from law enforcement agencies.
