The Enforcement Directorate (ED) has stated a large-scale gold smuggling racket operating across the India-China Line of Actual Control (LAC), revealing that over 1,000 kilograms of foreign-origin gold worth approximately Rs 800 crore were illegally transported into India during 2023 and 2024. The investigation has uncovered the involvement of a Chinese national, several Tibetans, and local Indian accomplices in the illicit operation.
The probe was launched under the Foreign Exchange Management Act (FEMA) following a significant seizure by the Indo-Tibetan Border Police (ITBP) in July 2024, when ITBP personnel apprehended three locals and seized 108 kg of foreign-origin gold bars during a routine patrol along the LAC in the Ladakh region.
The ITBP, responsible for guarding the 3,488-km-long India-China border, handed over the seized gold bars for further investigation. The Directorate of Revenue Intelligence (DRI) also became involved in the probe and discovered that a total of 1,064 kilograms of gold had been smuggled into India using similar methods. Notably, the payments for these transactions were made in cryptocurrency, specifically USDT (Tether), making the operation harder to trace.
On Tuesday, coordinated searches were conducted by the ED at six locations, including five premises in the National Capital Region (NCR) and one in Ladakh, as part of the ongoing investigation. During its probe, the ED detained 10 individuals under the Conservation of Foreign Exchange and Prevention of Smuggling Activities (COFEPOSA) Act. These individuals remain in custody as the case proceeds.
According to the ED, the operation was masterminded by an Indian national named Tendu Tashi, who was responsible for coordinating the entire logistics of smuggling gold bars from the Tibet sector of the LAC to Delhi. A Tibetan resident, Tenzin Khandap, was designated to receive the gold from a Chinese national named Bhu-Chum-Chum. Khandap then transported the gold to the LAC, where it was handed over to Indian porters operating on the Chinese side.
Under Tashi’s direct instructions, Tenzin Samphel—Khandap’s uncle—recruited two porters to assist in the physical movement of the gold. The first significant seizure of 108 kg of gold represents just a part of the racket, as the total amount smuggled reached 1,064 kg over the span of two years.
Once inside India, the gold was distributed to various individuals in Delhi, who subsequently sold it to gold jewellers and dealers across the city, effectively injecting the smuggled metal into the legitimate market. The payments for these illegal transactions were routed through cryptocurrency, facilitating a layer of anonymity for the conspirators.
The ED’s investigation highlights a sophisticated and well-organized smuggling network that exploited the rugged terrain of the India-China border and modern digital payment systems to carry out large-scale economic offenses.
Further investigation is underway, and the ED is expected to intensify actions against other individuals and entities linked to this smuggling syndicate in the coming weeks.
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