Police seize 9 kg gold on Khasa-KTM route

DEC 05 -

Police on Tuesday seized 9kg gold being smuggled into Nepal from Khasa, China.

The seizure has confirmed speculations that smuggling of the precious yellow metal has increased at a time when demand has outstripped supply in the country.

The metal was found hidden above the driver’s seat of a container van ferrying ready-made garment. The police confiscated the gold worth Rs 46.02 million from Dhulikhel check point acting on a tip-off.

The Police handed over the diver, Sete Tamang of Tatopani, Sindhupalchowk, seized gold, and the van to the Department of Customs for further investigation on Tuesday. The owner of the van is Om Bahadur Bajracharya of Tatopani-4, according to preliminary investigation of the police. “A detailed investigation will be carried out by the department,” said Kavre Police Chief Gita Upreti.

During interrogation, Tamang revealed it was the fourth time in three months that he brought gold to the Capital from Khasa. He said he used to hand over the gold to Tibetans living in Kathmandu, but he does not know their names.

This is the first time in a decade that smuggled gold has been seized on the Khasa-Kathmandu route. About 11 years ago, police had seized 1 kg gold from a vehicle on the same route.

Bullion traders said smuggling of gold has risen of late due to low supply and high demand in the domestic market. Banks that have been assigned to import gold can sell just 15 kg in a day as per the directive issued by the Nepal Rastra Bank. On top of that, to capitalise on the shortage of the Indian rupee in Nepal, black marketers illegally export gold to India to buy the currency and sell it in higher rates.

“Tuesday’s case has clearly showed that there is unethical trading going on as a result of the shortage of gold and Indian Currency in the local market,” said Tej Ratna Shakya, president of the Nepal Gold and Silver Dealers Association. He said they had informed the Department of Customs six months ago to control smuggling.

“The market has faced problem as there is no adequate supply,” said Upendra Paudel, vice-president of Nepal Bankers’ Association. Although that is not exact estimation of the demand, Paudel said the demand for gold has ‘certainly increased above the 15kg-a-day mark due to the wedding season’.

Source: The Kathmandu Post