Rajasthan Treasury Holds ₹64 Crore in Seized Gold and Silver as CAG Calls for Auction

The Comptroller and Auditor General (CAG) has raised serious concerns over 29.011 kilograms of gold worth ₹64.44 crore and 972.75 kilograms of silver lying idle in the Jaipur Reserve Treasury , bringing fresh attention to a much larger national issue— thousands of crores worth of seized gold and silver stored in government treasuries across India .

The audit report has prompted renewed discussion on whether governments should speed up the disposal of confiscated precious metals after court proceedings are completed. According to the CAG, the prolonged delay not only blocks potential government revenue but also increases expenditure on security, storage and maintenance.

₹64.44 Crore Worth of Seized Gold and Silver Still Awaiting Disposal

The audit found that 29.011 kg of gold and 972.75 kg of silver , seized in various criminal cases, have remained in government custody for years despite being declared state property by the courts.

After legal proceedings concluded, the valuables were assessed by the Finance Department. However, as of May 2025 , the disposal process had still not been completed.

The CAG has recommended that the Rajasthan Government complete the process in accordance with the Rajasthan Treasury Rules, 2012 .

Jaipur Reserve Treasury Holds Court-Declared Government Valuables

Under Rule 122 of the Rajasthan Treasury Rules, 2012 , the Jaipur (City) Treasury functions as the state's Reserve Treasury.

Gold, silver, diamonds and other valuables confiscated in civil and criminal cases and declared government property by courts are deposited here before their final disposal.

The Finance Department classifies such valuables into two categories:

• Archaeological artefacts , which are transferred to the Department of Archaeology.
• Gold, silver and other precious metals , which are required to be sent to the Government of India Mint in Mumbai for refining before being monetised or sold according to government rules.

CAG Says Delay Is Increasing Government Costs

The audit observed that although valuation of the seized gold and silver has already been completed, the disposal process remains pending.

According to the CAG, the delay is forcing the government to spend additional money on security arrangements, storage, inspections and maintenance while valuable assets remain locked inside treasury vaults instead of generating revenue.

The report has recommended immediate action to dispose of the valuables through the prescribed legal procedure.

Issue Extends Beyond Rajasthan

While Rajasthan has attracted attention because of the latest audit findings, similar situations exist in several states where precious metals seized in criminal investigations remain in government custody for years.

Recent enforcement actions include:

• Uttar Pradesh: Vigilance authorities reportedly seized around 13 kg of gold , 9 kg of silver , cash and other assets during a disproportionate assets investigation involving a retired transport department official.
• Karnataka: The Bureau of Indian Standards (BIS) seized approximately 1.6 kg of gold jewellery worth nearly ₹2.77 crore from jewellery shops in Bengaluru for alleged hallmarking violations.
• Several states, including Bihar, Uttar Pradesh and Karnataka , have reported major seizures of gold and silver in corruption, tax evasion and criminal cases over recent years.

Gold Smuggling Crackdown Has Led to Massive Seizures

Central enforcement agencies have significantly intensified action against international gold smuggling networks.

Government data presented in Parliament shows that between FY 2022-23 and October 2025 , the Customs Department and the Directorate of Revenue Intelligence (DRI) seized 8,598.18 kilograms of gold valued at more than ₹5,003.60 crore across Indian airports.

Among the major yearly seizures:

The DRI has also conducted multi-state operations in Bihar, Jharkhand and West Bengal , uncovering organised gold smuggling networks and recovering approximately 65 kilograms of smuggled gold in one major operation.

Experts Call for Transparent Disposal Policy

Financial experts believe that seizure is only the first step , while timely disposal is equally important once court proceedings conclude.

Keeping confiscated assets locked in government treasuries for years increases public expenditure and prevents governments from realising potential revenue through monetisation.

Many experts have suggested that the Central Government and state governments should establish a uniform national policy with clear timelines for disposing of confiscated gold, silver and other valuable assets after legal ownership transfers to the government.

CAG Also Flags ₹29.79 Crore in Pending Government Accounts

Apart from the issue of seized valuables, the audit also highlighted financial irregularities involving ₹29.79 crore spent through 17 Advance Contingency (AC) Bills .

According to the report, government departments failed to submit the required Detailed Contingency (DC) Bills , leaving expenditure adjustments pending for nearly 35 years , with some cases dating back to 1990–91 .

The CAG described the lapse as a violation of financial discipline and urged the state government to clear all pending cases without further delay.

Key Highlights

Why This Matters

The Rajasthan audit has highlighted a broader issue affecting governments across India. While enforcement agencies continue to seize large quantities of gold, silver and other valuable assets in criminal and smuggling cases, delays in their legal disposal mean that substantial public wealth remains locked away for years. The CAG believes that faster, transparent monetisation could increase government revenue, reduce storage costs and improve financial management nationwide.