Context: A Special Court of Economic Offences in Bengaluru rejected the bail plea of Kannada actor Ranya Rao, who was arrested for allegedly smuggling over 14 kilograms of gold on a flight from Dubai to Bengaluru.

Background: –

• Directorate of Revenue Intelligence (DRI) officials called it one of the biggest seizures of gold at Bengaluru airport in recent times.

Key points

• Until its repeal in 1990, the Gold (Control) Act, 1968, curbed gold imports and placed heavy restrictions on the acquisition, possession, and disposal of gold in India. However, with liberalisation in 1990s, the government modified its approach, imposing an import duty on gold.
• Now, gold imports are largely governed under the Customs Act, 1962, and by the Central Board of Indirect Taxes and Customs (CBIC). 
• The customs duty for gold may differ depending on the amount of gold carried by a passenger and the duration spent abroad before traveling back to India, as per the Baggage Rules, 2016 (issued under the Customs Act).
• Under these rules, a man residing abroad for over a year may carry up to 20 grams of jewellery duty free (with a value cap of Rs 50,000) and a woman may similarly carry up to 40 grams (with a cap of Rs 1 lakh). 
• The CBIC also has specific guidelines for Indian passengers returning from Dubai after residing there for over six months, allowing them to carry up to 1 kg of gold as long as the applicable customs duty is paid.
• In 2003, the Supreme Court held that any article imported without complying with the relevant conditions or restrictions must be considered a “prohibited good”. Such goods are liable to be confiscated under Section 111 and punished under Section 112 of the Customs Act. 
• The punishment may include a fine of up to the value of the goods. Section 135 provides a punishment of up to 7 years imprisonment if the market price of the smuggled goods exceeds Rs. 1 lakh.
• Smuggling is also punishable under Section 111 (Organised Crime) of the Bharatiya Nyaya Sanhita, 2023, which punishes “trafficking in illicit goods” with imprisonment of at least five years, extendable to life imprisonment. 
• The UAPA also carries the same punishment for smuggling as a “terrorist act” under Section 15 if it causes “damage to the monetary stability of India”.

Source: Indian Express