Customs officials have arrested J.J. Swasthan Jagannath, proprietor of Krisha Gold Testing, Thrissur, in connection with an illegal gold trading network in Thrissur.
The Customs case is that large quantities of smuggled gold were being brought to the State by train and bus from Chennai and Madurai by carriers of unorganised jewellery-making units on the outskirts of Thrissur.
Parallel market
The smuggled-in product would be a compound from which gold was extracted and converted into 24-carat cut pieces. The pieces, known as ‘moosha’ in the gold market, were later used to make gold ornaments and sold through jewellers without proper accounting. The trade practice was part of the parallel gold market, according to Customs documents.
The Customs had seized large quantities of gold and arrested a few persons in Thrissur last year. During a raid last year, gold worth over ₹1.7 crore and currency worth ₹27 lakh were seized from Jagannath, the agency submitted.
The accused told Customs that he used to collect gold waste from small-scale gold manufacturers and gave in return 24-carat gold or cash. He got the gold waste melted at a firm in Thrissur.
No documents
Investigations revealed that the gold in his possession was of foreign origin. He could not produce any documents for the gold seized from him, the Customs submitted.
The accused, who was produced before the Economic Offences Court, Ernakulam, was later released on bail.