Acting on a tip-off, a team of local Crime Branch of Pune rural police nabbed Mahesh Balasaheb Mali (38), owner of Mahesh Jewellers at Govind Halwai chowk at Raviwar Peth and his driver Sadashiv Balwant Jangam (28) near Nawle Lawns near Katraj on the Pune-Bangalore highway around 9 pm on Thursday. Police found gold biscuits, silver chains and cash, all worth Rs 77 lakh in special cavities made in the car. Police arrested the duo under Section 41(1) d of the Criminal Procedure Code.

District superintendent of police Pratap Dighavkar said the two were arrested because they were unable to produce any receipts of the gold, silver and money recovered from them. “The gold biscuits have imprints of Switzerland. We have intimated the customs department. Seized gold, silver, money and car would be handed over to the customs department for further investigation. It is likely to unearth a big smuggling and hawala racket,” he said.

“We would also write to the Income Tax Department and Directorate of Revenue Intelligence to probe whether the currency of Rs 28 lakh was illegally circulated,” he added.

Assistant Commissioner S B Shinde of customs department said, “We would be taking over the custody of Mali and Jangam from court. It seems that gold has been smuggled from Switzerland. Investigation will be done to know the origin and destination of the gold and money recovered from the suspects.”