BENGALURU: Investigation into the gold-smuggling racket involving Sandalwood actor Ranya Rao has taken an interesting turn: The Directorate of Revenue Intelligence (DRI) has revealed that she, by illegally bringing in 14.2kg of gold from Dubai, had tried to evade duties to the tune of Rs 4.8 crore!
This was part of the submission made by DRI to the court while seeking her custody. Ranya, who is the daughter of the director general of police (Karnataka Police Housing Corporation) Ramachandra Rao and wife of architect Jatin Hukkeri, was caught on the night of March 3 at Kempegowda International Airport (KIA) while smuggling in 14.2kg of gold (valued at Rs 12.5 crore), in violation of Section 135 of the Customs Act, 1962.
Suspecting her to be part of a gold smuggling syndicate, a source said: “Had she not been caught and walked out of the airport with the gold bars she had strapped to her body, the state exchequer would have lost nearly Rs 5 crore.”
However, the DRI claim also turns the spotlight on another question: Will Ranya be freed if she agrees to pay up Rs 4.8 crore as customs duty along with penalty? TOI tossed this question to DRI officials and legal experts, and their replies were negative. “She can’t feign ignorance or claim innocence as the market price of the gold found on her person exceeded Rs 1 crore and the attempted evasion of duty exceeded Rs 30 lakh,” an official source explained.
Legal experts pointed out that her foreign travel history, mostly of short durations, can also prove counter-productive for her if she isn’t in a position to substantiate the reasons for the trips.
Senior advocate MS Shyamsundar said: “She can’t simply pay a penalty to avoid the consequences, as the Customs Act doesn’t allow settlement for offences such as smuggling. If other investigation agencies, such as the Enforcement Directorate (ED) under the Prevention of Money Laundering Act (PMLA), become involved, they can also seek her custody for separate cases. Ranya may face tougher legal challenges, especially because of provisions like Section 45 of the PMLA, which could make obtaining bail more difficult. However, a recent Supreme Court ruling on arrest procedures under laws like Goods and Services Tax provides a potential loophole: If the investigation agencies haven’t followed the proper arrest procedures, she may be entitled to bail as a result of non-compliance with legal formalities.”
The possibility of bail will depend on the charges against her and the strength of the prosecution’s case.
Meanwhile, special public prosecutor Kiran S Javali said the discretionary authority to allow an arrested person to walk out while accepting fines/penalties is the investigating agency. “But such power will be used when seized materials are in small quantities. In this case, since the seized gold is of huge amount, the fine/penalty doesn’t arise at all. After arresting and carrying out a preliminary investigation, DRI will issue A show-cause notice to Ranya. At the same, the agency will see the possibility of invoking the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act.”
Javali said the possibility of ED and income tax sleuths stepping in is also high. While ED will explore the money-laundering angle, I-T will carry out investigation into undisclosed assets. The maximum punishment for such offences is imprisonment of seven years with fine, he added.
