Bengaluru: In a major development in the high-profile gold smuggling case, the Enforcement Directorate (ED) has provisionally attached immovable properties worth Rs 34.12 crore belonging to accused Ranya Rao and her associates in Bengaluru and Tumkur districts. Ranya Rao is stepdaughter of Karnataka ADGP Rama Chandra Rao who was sent on compulsory leave after the issue came to light.
The seized assets include a residential house in Victoria Layout, a plot in Arkavati Layout, an industrial land parcel in Shirada, and agricultural land in Anekal on the outskirts of Bengaluru, the ED said in an official statement on Thursday.
According to the ED, Ranya Rao, Tarun Kondur Raju and their associates are accused of operating an elaborate international gold smuggling racket with links to Dubai, Uganda and other countries. The gang allegedly purchased large quantities of gold from suppliers abroad and routed payments through illegal hawala channels to evade Indian customs and banking regulations.
Investigators revealed that the accused used to buy gold from foreign suppliers in Dubai and Uganda, pay for it using unaccounted cash transferred via hawala networks, and then smuggle the gold into India through multiple airports using false customs declarations.
“During our investigation, it was found that the accused frequently misdeclared the final destination of gold shipments abroad. They used to file fake customs declarations showing that the gold was being exported to Switzerland or the United States, but instead diverted it to India using multiple sets of travel documents,” an ED official said.
Once the smuggled gold reached India, it was sold to local jewellers and other buyers in cash. The cash generated was again sent abroad through hawala channels to fund further purchases of gold, thereby creating a constant illegal flow of precious metal and unaccounted money across borders.
Arrest and seizures
The racket came to light when Ranya Rao was intercepted at Kempegowda International Airport, Bengaluru, in March this year while returning from Dubai. Customs officials found 14.213 kg of gold, valued at Rs 12.56 crore, concealed in her baggage. Following her arrest, the ED conducted raids at Ranya Rao’s residence and other premises linked to her, which led to the seizure of undocumented cash worth Rs 2.67 crore and gold jewellery valued at Rs 2.06 crore.
The agency also seized multiple mobile phones and digital devices during the searches. Forensic examination of these devices reportedly confirmed that the accused were in touch with foreign gold suppliers, hawala intermediaries, and Dubai-based customs clearing agents who helped them smuggle gold consignments under fake paperwork.
Contradictory statements
During interrogation under Section 50 of the Prevention of Money Laundering Act (PMLA), Ranya Rao reportedly claimed ignorance about the smuggled gold and the unaccounted assets recovered from her properties. However, the ED said the evidence collected so far clearly contradicts her statements.
The Directorate of Revenue Intelligence (DRI) had earlier seized 14.2 kg of gold linked to Ranya Rao. However, further investigation by the ED indicates that the racket could have smuggled gold worth at least Rs 55.62 crore through similar channels.
The ED’s provisional attachment order aims to recover proceeds of crime under the PMLA. Officials added that the investigation into the money trail and the involvement of other suspects is still underway.
Sources in the ED said that more arrests and property attachments are likely as the agency unearths additional assets acquired using illegal proceeds. “This case highlights how hawala networks and fake customs declarations are being misused to smuggle gold and launder money. We will continue to pursue all those involved and attach their assets as per law,” an official said.
The ED has urged the public to come forward with credible information about other properties or assets linked to Ranya Rao and her associates to strengthen the ongoing probe.
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