In light of rising gold smuggling cases, the Central Board of Indirect Taxes and Customs (CBIC) has clarified what happens to gold seized or confiscated by Customs authorities in India. This information comes as a warning to citizens amid an increasing number of fraud schemes related to “Customs gold auctions.”
Where Does Seized Gold Go in India?
According to the Ministry of Finance, all gold items seized by Indian Customs are transferred to the Security Printing and Minting Corporation of India Ltd. (SPMCIL). These are subsequently handed over to the Reserve Bank of India (RBI).
This standardized process ensures secure handling and avoids any scope for unauthorized resale or misuse of confiscated assets.
No Auctions for Seized Gold: CBIC Warns Public
The CBIC has urged the public to stay alert and avoid falling prey to fraudsters who claim to offer cheap gold through fake “Customs auctions.” The fact is—there is no public auction of gold seized by Customs in India. Any such claims should be treated as scams.
Why This Matters
India remains one of the largest gold markets in the world, which unfortunately also makes it a hotspot for smuggling. As authorities tighten control, scammers are using sophisticated methods to trick gullible buyers. Public awareness is now more crucial than ever.
How to Stay Safe?
- Do not trust individuals or websites offering “seized gold at low prices.”
- Report suspicious activity to CBIC or your nearest Customs office.
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