According to the sources, this rise could be attributed to multiple factors, which include, lack of awareness about making it mandatory for jewellers to keep record of personal identification in case of gold buying of worth Rs 50,000 and above.
However, the government on October 6, had revoked the rule. So now the previous rule is applicable where personal identity is mandatory only when the jewellery purchase is of Rs 2 lakh and above.
"The another key factor for such an increase is due to the price difference between India and Dubai markets. As most of the seizure was seen to be smuggled from Dubai. There are majorly two-three active groups who were assigned to purchase gold in Dubai. And then the same gold has been brought back in India, explained an officer. Currently, the difference between the prices varies between 2,500-3,000 per 10 grams. This makes the deal attractive for gold smugglers.
Besides, the intelligence units have observed that there is a significant rise in smuggling the precious metal via air route as compared to sea route which was earlier the most sought route by the smugglers. Typically, gold is mostly smuggled into India from Dubai, Singapore, Abu Dhabi, Hong Kong, Mauritius and Nairobi.