Illegal trafficking of gold on a steady rise

This morning also, customs officials seized 17 kilos of gold being smuggled to Kathmandu from Tatopani checkpoint. Two Chinese and a Nepali national were caught by the customs when they were entering Nepal from the bordering Tibetan city of Khasa, with the illegal gold hidden in juice cans.

As the Indian government has tightened gold imports to control its ever-widening current account deficit, Nepal has become a convenient route for the gold-run from China to India.

“Though the supply of gold in the domestic market is not enough to meet the demand, we have heard that partial demand is met by such illegally trafficked gold,” pointed out former president of the Federation of Nepal Gold and Silver Dealers’ Association Tej Ratna Shakya.

The Nepali government only allows commercial banks to import gold within a total quota limit of 20 kilos per day. According to jewellers, demand for gold during the festive and wedding seasons — between mid-September and mid-December — is as high as 35 kilos a day.

Read More: www.thehimalayantimes.com/fullNews.php