Gold smuggling case: Ranya Rao’s ‘mule’ defense crumbles as DRI uncovers international nexus

Rao's plea for bail was turned down by the Economic Offences Court, which viewed the offense as a "serious threat" to national security and the economy of the country.

The Directorate of Revenue Intelligence (DRI) has rejected actor Ranya Rao's allegation of being a "mule" in a massive gold smuggling ring on the basis of solid evidence against her linking her to an organised international network. Investigations have uncovered that Rao and actor Tarun Raj Konduru allegedly operated a gold business in Dubai, which enabled illegal gold imports into India.

Rao and Konduru set up Vira Diamonds Trading LLC in Dubai in 2023, running the business on a 50-50 shareholding arrangement, according to a News18 report. Konduru, the second accused as per the names given, handled the day-to-day business of the firm while Rao utilized her family's power to push the gold trade through global markets, it is reported.

The probe stated that Rao had a well-established client base in Bangkok and Geneva, and procured gold bars from Doha and Geneva-based suppliers and made payments through Dubai-based bank accounts. The DRI is now carefully scrutinising her foreign transactions and customs declarations to identify the extent of the smuggling operations.

Investigations have revealed that Rao had invested Rs 8-10 lakh in Vira Diamonds through her HDFC Bank account, obtaining a Dubai residence card that allowed visa-free travel and regular gold shipments. The company is said to have exploited the UAE's zero-import duty on gold to import and subsequently channel it to India.

Rao also leveraged Konduru’s US citizenship, using his passport to clear gold consignments at Dubai Customs. Konduru’s flights and accommodation were often booked using Rao’s American Express card, as revealed in the financial records.

The DRI investigation revealed a gold scam in which Vira Diamonds lost Rs 1.7 crore to a Dubai seller due to non-delivery. According to officials, this payment had been facilitated through hawala transactions from India.

In spite of her claim that she was working under duress, investigators identified several instances that contradict Rao's assertions. She had made at least 27 journeys in the last year, supposedly smuggling gold every time without declaring it to customs.

Investigations at her Lavelle Road home resulted in the seizure of customs declarations from Dubai on November 13 and December 20, 2024. Though the documents indicated that Vira Diamonds was shipping gold to Geneva, investigations found the consignments never arrived in Geneva.

In her interrogation, Rao mentioned that she was asked to carry gold by some unknown persons over VoIP calls and learned how to smuggle through YouTube tutorials. She accused an unidentified person at Dubai Airport of handing over the consignment to her, stating that it was her first encounter with such activity.

However, records showed that she had booked round-trip tickets from Bengaluru to Dubai using her husband Jatin Hukkeri’s credit card, raising suspicions about his potential involvement. The DRI conducted raids at multiple locations linked to Hukkeri’s businesses in Bengaluru. He later secured an interim relief from the Karnataka High Court, preventing his immediate arrest.

Rao's plea for bail was turned down by the Economic Offences Court, which viewed the offense as a "serious threat" to national security and the economy of the country.

She has been sent to judicial custody until March 24, with the next hearing for bail on Wednesday. Rao was arrested on March 3 at Kempegowda International Airport (KIA) with 14.2 kg of gold. Searches at her home resulted in the recovery of gold jewelry worth Rs 2.06 crore and Rs 2.67 crore in cash.