A sprawling network of international gold smuggling stretching from the high-altitude passes of the India-China border to the crowded markets of Delhi has been exposed in a recent investigation by the Enforcement Directorate (ED). The raids, carried out under the Foreign Exchange Management Act, revealed how an estimated ₹800 crore worth of foreign gold entered India between 2023 and 2024, routed through intermediaries, porters, and a shadowy system of crypto payments.
The ED’s Srinagar zonal office conducted searches at five locations across Delhi-NCR and one in Ladakh, unearthing documents and evidence that point to a sophisticated operation. The probe is connected to an earlier seizure by the Indo-Tibetan Border Police (ITBP), when 108 kilograms of foreign-origin gold was confiscated near the frontier.
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A Cross-Border Chain of Smuggling
According to investigators, the operation began deep inside Tibet, where individuals like Najin Khandup, a resident of the region, received gold consignments from China. From there, the contraband was handed over to porters stationed along the border. These porters, often hired by middlemen such as Tenzin Sampel, the uncle of Khandup, were paid to carry the gold across into Indian territory.
The smuggling was orchestrated at the behest of Tendu Tashi, who is alleged to have coordinated the transport of over 1,064 kilograms of gold into India. Once smuggled, the gold was moved swiftly to Delhi, where it was sold to jewellers and dealers, seamlessly blending into the legitimate market supply chain.
Crypto Links and Expanding Inquiry
Investigators have traced payments back to buyers who used cryptocurrency, primarily USDT (Tether), to settle accounts with syndicate leaders based in China. This digital layer allowed transactions to bypass conventional banking systems, complicating the trail of financial evidence.
The Directorate of Revenue Intelligence (DRI), which has been conducting a parallel investigation, reported that at least 10 individuals have been detained under the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act (COFEPOSA). Officials believe the syndicate’s reach extends beyond India, suggesting links to a wider transnational smuggling economy that has increasingly relied on cryptocurrencies to mask illicit trade.
While the ED continues to unravel financial records and international connections, the case highlights the vulnerabilities of India’s border security and the challenges posed by digital payments in enforcing trade and foreign exchange laws.