Page 57 - DRI ANNUAL REPORT EBOOK

Cross-border trade and smugglingcan have multi-dimensional impact on national security. Apart from its traditional impacts like being used by actors inimical to the security of the state to finance their activities and sustain themselves, increasingly, the global supply chain and volume of trade is being used to mask proliferation and illegal trade in dual-use goods as genuine trade transactions.Smuggling of FICN is another grave security threat. In the Indian context,
smuggling of Fake Indian Currency Notes (FICN) from across the border is largely state sponsored and is intended to harm and destabilise Indian Financial system. Smuggling of narcotics and drugs has also come to be linked with terrorism. Smuggling is, nevertheless, in itself lucrative and offers high margins. It doesn’t require heavy investments in infrastructure and human resources. This makes it a preferred mode of generating finances for non-state actors.
Narcoterrorism
In 2019-20 DRI booked multiple cases of smuggling of Narcotics along the western border and western seaboard.- In one such case DRI along with the Indian Coast Guard intercepted a fishing boat off the coast of Gujarat and seized 214 Kgs of Heroin which was meant for smuggling into India. In another case DRI effected a seizure of 7 Kgs of Heroin in Kupwara and Tangdhar in Jammu & Kashmir close to the Line of Control (LoC), which had been smuggled in from Pakistan Occupied Kashmir (PoK). In June 2019, Indian Customs seized 532 Kgs of Heroin concealed in bags declared to be containing rock salt while they were being imported into India from Pakistan through the Integrated Checkpost at Attari, Punjab. The case is also being investigated under Unlawful Activities (Prevention) Act for possible terror linkages. The magnitude and modus of the cases clearly indicate attempts by inimical elements to push narcotics into India and use proceeds of such smuggling to finance anti-national activities.
FICN
Fake Indian Currency Notes (FICN) pose a threat to the national security of India. FICN is smuggled into India from Pakistan mostly by way of staging through the land borders of Bangladesh and Nepal. In 2019- 20 Customs booked 16 cases leading to a seizure of FICN with a face value of Rs. 62.40 Lakhs. Bulk of the seizures comprised of Rs. 2000 denomination, with Rs. 500 denomination making up a smaller portion of the fake currency seized.
DRI analysis indicates that there has been a gradual improvement in the quality of the FICN being seized. Demonetisation had dealt a heavy blow to the fake Indian currency networks. These networks have been attempting to make a come-back, but have still not reached the same scale and quality.
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