Luxury watches being smuggled using hawala, crypto channels
With I-T and ED targeting the ultra-rich, smugglers are reportedly importing luxury watches via airport mules to evade duties and conceal black money. Transactions use hawala and cryptocurrency; prices range between Rs 1 crore and Rs 15 crore per watch in India
Hyderabad: With the Income Tax and Enforcement Directorate authorities focusing on ultra-rich to check tax evasions and black money, the latter are seeking the help of organised smuggling syndicates to source luxury watches into the country.
Watches of internationally acclaimed brands such as Jacob & Co, Patek Philippe, Richard Mille, Audemars Piguet, Rolex and others are being smuggled into the country through the airports by carriers. The carriers, often referred to as mules, are paid a commission of Rs 50,000 and a flight ticket for smuggling a watch out of the airport by wearing it on their hand, or concealing it in the baggage.
The luxury watches command a price between Rs 1 crore and Rs 15 crore a piece, depending upon the brand, while some pieces demand a far greater price. “A few reputed watch companies and agents are facilitating the smuggling of watches into the city. The ultra-rich, to avoid import duties and surveillance of financial institutions, are seeking the help of smugglers,” said a source who is in knowhow of the know.
The watches are studded with precious stones, increasing their value in the market. “If caught, the watch is passed off as a replica during the checking at the airport, or I-T or ED searches. So it is turning into the best option for the persons looking out for ways to conceal black money,” an official of a law enforcement agency said.
The transaction for the watches is done through Hawala channels or cryptocurrency. On placing the order, the local dealer in the city contacts his sources in foreign countries, in particular the UAE and Singapore. “A mule carrier then brings the watch to the city, and it is delivered. The box is delivered at a later date as it is brought by a different flight to avoid detection,” said the sources.
