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Both cases involve allegations of misuse of high-ranking officials’ influence, security protocol violations, and smuggling networks operating under the web of power. The unfolding gold smuggling investigation in Karnataka has drawn comparisons to Kerala’s 2019 scandal, where 30 kg of gold was smuggled using diplomatic channels. Both cases involve allegations of misuse of high-ranking officials’ influence, security protocol violations, and smuggling networks operating under the web of power.
In Karnataka, the government has launched a probe into the possible role of senior IPS officer Ramachandra Rao in a smuggling racket linked to his stepdaughter, actor Ranya Rao. A committee led by Additional Chief Secretary Gaurav Gupta is examining whether the DGP-rank officer had a hand in the operations and whether Ranya was given preferential treatment at Kempegowda International Airport, where she allegedly bypassed routine security checks. The CID is also investigating possible police complicity as well.
The Kerala Gold Story: A Familiar Playbook The similarities with Kerala’s infamous gold smuggling case are striking. In July 2019, customs officials intercepted 30 kg of gold worth Rs 15 crore, hidden inside diplomatic cargo addressed to the UAE Consulate General in Thiruvananthapuram. Shielded by diplomatic immunity, the consignment should have passed through unchecked — but a tip-off by an insider changed everything.
At the centre of it was Swapna Suresh, a woman who leveraged her connections and fluency in Arabic to infiltrate the UAE Consulate and later, the Kerala government’s IT department. She, along with others, had been smuggling gold undetected for over a year, exploiting diplomatic cargo exemptions to move illicit shipments through Customs. As investigators dug deeper, they uncovered a smuggling network embedded in the corridors of power.
Who is Swapna Suresh? Originally from Dubai, Swapna’s career was marked by controversy long before the gold smuggling case erupted. In 2013, while working at Air India SATS in Thiruvananthapuram, she was accused of fabricating sexual harassment complaints against an airport employee using forged signatures. Though she was named as an accused, the case is yet to see the light of day.
In 2016, she secured a job at the UAE Consulate-General, rising in prominence due to her Arabic skills and knowledge of the Emirates. But when the old case resurfaced, she was removed from her role. But that didn’t end her political ascent—she later landed a job at Kerala State Information Technology Infrastructure Limited (KSITIL) with the alleged backing of then senior IAS officer M Sivasankar, then Principal Secretary to Chief Minister Pinarayi Vijayan.
Her appointment at KSITIL was controversial from the start. Sivasankar had reportedly recommended her through PricewaterhouseCoopers, which led to several questions. While officially it was claimed she was qualified, her own brother admitted she had never completed her school board exams, exposing her use of powerful people to land her the job.
The Smuggling Racket and Political Fallout The Kerala smuggling network thrived on forged authorisation letters, complete with fake UAE Consulate stamps, ensuring smooth passage through Customs. Over 21 separate occasions, gold worth crores was smuggled, with major consignments in December 2019 and June 2020. It was a well-oiled operation—until Customs intercepted that one fateful consignment in July 2020.
Senior IAS officer M Sivasankar, who held dual roles as IT Secretary and Principal Secretary to CM Vijayan, was suspended after his close links to Swapna Suresh were exposed. Call records showed frequent communication between them, and when investigators cracked open Swapna’s bank locker, they found Rs 1 crore in cash and nearly a kilogram of gold. The Enforcement Directorate (ED) later described him as a key player in laundering the proceeds of smuggled gold.
During interrogation, Sivasankar admitted to meeting Swapna in 2017 when she sought financial help. He also acknowledged assisting her in opening a bank account—one that investigators believe was used to funnel money from the smuggling operations. The turning point came when the National Investigation Agency (NIA) raided Swapna’s bank locker.
Inside, they found the damning evidence — Rs 1 crore in cash and a kilogram of gold. Swapna claimed the money was her commission for helping Unitac Builders and Sane Ventures LLP secure the Kerala government’s LIFE Mission housing project. She pointed fingers at Sivasankar, stating that he had arranged meetings with the LIFE Mission CEO to ensure approvals.
Sivasankar, however, denied wrongdoing, maintaining that he had only attended meetings as a representative of the Chief Minister’s Office (CMO). But the digital trail told a different story. Data extracted from Swapna’s phone—spanning over 18,000 pages—contained WhatsApp exchanges with Sivasankar that led to his arrest on October 29, 2020.
Investigators later discovered that the smuggling network had successfully trafficked gold 19 times since November 2019, including 36 kg in December alone. The ED’s Move Against Sivasankar The Enforcement Directorate (ED) wasted no time in filing a charge sheet against Sivasankar in the money laundering case linked to the Kerala gold smuggling racket. Exceeding a thousand pages, the charge sheet was submitted before an Ernakulam ED court just as Sivasankar neared 60 days in judicial custody—marking a crucial deadline that could have otherwise granted him bail.
The ED had already ordered the confiscation of his properties, stating that he was the mastermind of the operation and had amassed significant wealth through it. The agency revealed that the 1 kg of gold and Rs 1 crore in cash found in Swapna’s bank locker actually belonged to Sivasankar, allegedly part of a bribe from Santhosh Eapen, owner of a contracting firm, in exchange for securing the LIFE Mission contract. With probes by Customs, CBI, and ED still ongoing, investigators argued that granting bail to Sivasankar would jeopardise the investigation.
Several digital records were still under analysis, and a supplementary charge sheet was expected. The Customs Crackdown In November 2023, the Customs department imposed penalties on key players in the Kerala case, including Rs 50 lakh on Sivasankar and Rs 6 crore on Swapna Suresh. The fines were levied under Sections 112(a) and (b) of the Customs Act, 1962, for improper importation of goods.
A total penalty of Rs 66.6 crore was imposed on 44 accused, including two former diplomats of the UAE Consulate in Thiruvananthapuram. Among them, Jamal Husein Alzaabi, the then Consul General, and Rashed Khamis Alimusaiqri Al Ashmei, the then Admin Attaché and ex-Charge d’Affaires, were each fined Rs 6 crore.
The Customs department’s order also hit other key accused. PS Sarith and Sandeep Nair were fined Rs 6 crore each, while KT Rameez of Malappuram, believed to be the kingpin, faced a penalty of Rs 6 crore as well. Cappithan Agencies, a Customs broker, was fined Rs 4 crore, and S Jayashankar, Swapna Suresh’s husband, was ordered to pay Rs 2 crore.
The Customs department revealed that the smuggling racket had successfully moved 136.8 kg of gold between July 15, 2019, and June 27, 2020, using the Air Cargo Complex in Thiruvananthapuram. The network’s operations were sophisticated—gold was smuggled, sold in India, and the proceeds were routed back to Dubai through hawala channels.
The cycle continued for months, undetected..
