Gun smugglers in India have been stealing arms and ammunition under the nose of the the Ministry of Defense. With insider help they have been stole weapons and ammunition from the state arms factory Indian Ordnance Factories (IOF).
Times of India reports (emphasis mine):
Apart from 25 guns, including five rifles, police found over 6,000 rounds of ammunition, three pen pistols and eight fake gun licenses. It was the arrest of Ashok Mondal and five of his aides that led police to a trader’s house and one of the biggest arms haul in the country.
Investigators have found that the gang used fake gun licenses to procure sophisticated weapons from the factories. “Without help of some ordnance factory employees, it is impossible to smuggle out arms and ammunition,” said an investigator. CID officers seized more than 6000 bullets of different calibres manufactured by ordnance factories, including bullets used in AK assault rifles.
In a country where firearms are heavily restricted and, I believe, imports are rare or non-existant I would have thought this kind of this would not happen.