New Delhi: Two people, including an employee of Air India SATS, have been arrested by customs officials for allegedly trying to smuggle into the country gold valuing about Rs 17 lakh at Delhi airport, according to an official statement issued Monday.

Air India SATS, which is a 50:50 joint venture between Air India Limited and Singapore-based SATS Limited, offers end-to-end ground handling services such as passenger and baggage handling, aircraft interior cleaning and cargo handling services among others.

A passenger was intercepted by the officials on his arrival from Bangkok on Friday.

"Further, one airport staff working for M/s Air India SATS was also intercepted, who was assisting the said passenger in smuggling," the customs department said in the statement.

A detailed personal baggage search of the passenger and the airport staff resulted in the recovery of two gold rods crudely given shape of kada (bangle), total weighing 600 grams and having total value of Rs 17.18 lakh, it said.

The passenger has also admitted that he was involved in smuggling of gold total weighing 300 grams on previous occasions at Ahmedabad airport, the customs department said.

"The Air India SATS staff has also admitted that he previously assisted some other passengers in smuggling of gold at Indira Gandhi International (IGI) Airport, New Delhi," it said.

Both the passenger and the AIR India SATS staff have been arrested and the gold was seized, the statement said.