NEW DELHI: The Directorate of Revenue Intelligence (DRI)’s report on ‘Smuggling in India’ 2023-24 highlights a rise in commercial fraud, including misuse of foreign trade agreements (FTA) by individuals/companies. According to the report, the agencies have detected cases of FTA misuse worth Rs 1,427 crore during 2023-24 compared to Rs 481 crore in 2022-2023.
Moreover, the DRI booked 109 cases involving 8223.61 kg of narcotic drugs and psychotropic substances including 107.31 kg of cocaine, 48.74 kg of heroin, 136 kg of methamphetamine, 236 kg of mephedrone and 7348.68 kg of ganja in 2023-24.
The seizures indicate an increasing trend of smuggling of cocaine through air passenger route, from 21 cases in 2022-23 to 47 cases in 2023-24, with majority of seizures effected at airports.
According to report, Free Trade Warehousing Zones in the Middle East are emerging as a major transit point from where cigarette- concealed consignments are shipped to India.
“Though illicit cigarettes are reportedly manufactured in certain South East Asian countries, it appears that the consignments are initially shipped to Dubai from southeast Asia and then re-routed to India,” it said.
According to the report for the fiscal 2023-24, the DRI initiated 485 import cases, involving illegal benefits totaling Rs 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 Rs 123.34 crore.
The first half of 2024-25 saw cigarette seizures climb by 19 per cent, reaching 3.95 crore sticks, compared to 3.31 crore sticks during the same period in FY24.
Illicit foreign currency seizures have also surged. DRI officials seized Rs 13.8 crore in foreign currency during the first half of FY25, surpassing the Rs 12.4 crore confiscated in all of FY24. Additionally, the agency uncovered a Rs 576 crore trade-based money laundering (TBML) racket. The scheme involved importing cheap electrical goods and cosmetics at inflated prices to channel foreign exchange out of the country.
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.
There is a sharp rise in seizures of drugs such as cocaine and methamphetamine, contraband cigarettes and illicit foreign currency over the past year.
According to report, the agency conducted 47 cocaine seizures worth Rs 975 crore in 2024—more than double the number recorded in the previous financial year.
The quantity of cocaine smuggled into India, primarily through airports, increased by 9 per cent to 107 kg during the same period. Methamphetamine smuggling has also spiked, especially in northeastern states like Assam and Mizoram, according to DRI’s latest bulletin.
While 2024 recorded meth seizures of 136 kg, the first half of 2025 alone saw 123 kg confiscated in 11 cases.
In 2024, DRI booked 109 cases involving 8,224 kg of narcotic drugs and psychotropic substances.
This included 107 kg of cocaine (Rs 975 crore), 49 kg of heroin (Rs 365 crore), 236 kg of mephedrone (Rs 357 crore), and 136 kg of methamphetamine (Rs 275 crore).
With inputs from PTI
Gyanvapi Mosque Seeks Supreme Court Ruling on Worship Act 