At least three Central agencies are reportedly probing whether extremist elements extorted protection money from a Hyderabad-based hawala network suspected of having financed the smuggling of gold into the country from Dubai in air cargo consignments addressed to the consulate of the United Arab Emirates (UAE) here.
Senior Customs investigators said they believed the money raised in Kerala to seed the smuggling runs was sent to the Dubai end of the international racket via the informal hawala banking system headquartered in Hyderabad. The accused used the underground money transfer business to dodge banking regulators. The operators at the Dubai end used the funds to purchase gold and convert the bullion into concealable form in cargo shipments addressed to the consulate. The smugglers used the same channel to plough back the profits into the pockets of their handlers in the Gulf. The National Investigation Agency (NIA), which is conducting a parallel probe into the racket, is reportedly inquiring whether the protection money paid by the hawala operators had gone to plot or finance domestic terrorism or fuel radical activity.
Wealth case
The Enforcement Directorate, the third agency involved in the case, is looking at the money laundering and illegal amassment of wealth angles of the case.
Customs enforcers said the accused had smuggled at least 170 kg of contraband gold in 21 air cargo consignments send from Dubai to the UAE consulate here since July last. They also conducted two dry runs to gain an understanding of how Customs inspectors at the air cargo complex at the international airport here dealt with cargo sent to the mission from the UAE.
The Customs reportedly learnt that the UAE government had taken a grave view of the matter. UAE authorities had reportedly questioned at least one consulate official suspected of having enabled the smuggling operation by raising receipted invoices to regularly ship everyday items and bathroom fittings to the diplomatic mission here. The official, who left the country for the UAE, had denied any wrongdoing and said the accused had faked his signature and letters of authorisation. A senior Customs official said the UAE government was likely to send the testimony of the consulate official to investigators here.
