Published On: Sat, Nov 12th, 2016

Rs 42-cr worth unaccounted gold found: How jewellers exchange banned notes for gold

New Delhi: The income tax officials have detected uncounted gold worth Rs 42 crore in just a day. The crackdown on jewellers had started on Thursday after reports came that jewellers were selling gold to people at higher prices and taking payments in banned Rs 1000 and Rs 500 notes. The jewellers will now be penalised for unaccounted gold.

Of the Rs 42 crore, Rs 22 crore worth of unaccounted gold was detected with bullion traders and jewellers in Delhi’s Chandini Chowk  and Karol Bagh areas. The balance Rs 20 crore of gold was detected in surveys by income tax officials in Jallandhar, Ludhiana and Chandigarh.


It is this unaccounted gold that the jewellers are selling to people who are buying gold with undisclosed income stashed in the form of cash (in Rs 1000, Rs 500 notes). Taking advantage of the situation, jewellers were taking the banned notes at a heavy discount by selling gold at  prices upto Rs 70,000 per 10 grams. But the jewellers were issuing receipts of less than Rs 2 lakhs, to avoid the mandatory PAN furnishing requirement, reports the Times of India.

The searches are likely to continue.  A team of officials from the Enforcement Directorate, Income Tax and Central Excise intelligence are involved in the searches.(News24Bureau)