By A Correspondent | Mumbai | Posted 12-Sep-2017
Centre's new rule makes furnishing of Aadhaar must for purchases worth Rs 50,000 and above. Representation Pic
Jewellers are not a happy lot, and that's expected considering the government has made furnishing of Aadhaar card for purchase of gold worth Rs 50,000 and above mandatory. Several organisations of jewellers have reached out to the government seeking further clarification on the regulation as well as requesting a relaxation.
'A small amount'
"There is a lot of unrest among jewellers, especially the bigger, renowned ones who have been following all government regulations. Rs 50,000 is actually a small amount. In other countries, ID is asked for purchases worth $15,000 and above, which is around Rs 10 lakh," said Nitin Khandelwal, chairman of All India Gems and Jewellery Trade Federation.
"There is a lot of unrest among jewellers, especially the bigger, renowned ones who have been following all government regulations. Rs 50,000 is actually a small amount. In other countries, ID is asked for purchases worth $15,000 and above, which is around Rs 10 lakh," said Nitin Khandelwal, chairman of All India Gems and Jewellery Trade Federation.
"Also, most of our customers are homemakers. They don't always carry their Aadhaar card with them. This rule will definitely result in sales going down."
Talking about how the federation has put forth its concerns before the Centre, Khandelwal added, "This has led to two types of businesses — the authentic, where there are losses, and the illegal."
'Raise the limit'
As per members of India Bullion and Jewellers Association Ltd, the Centre introduced the rule on August 23 via a circular. The regulation would be implemented under the Prevention of Money Laundering Act, 2002.
As per members of India Bullion and Jewellers Association Ltd, the Centre introduced the rule on August 23 via a circular. The regulation would be implemented under the Prevention of Money Laundering Act, 2002.
"The first proposal to impose this rule was made in 2005, but it couldn't happen then. This time, working guidelines are in process, so buyers will most likely have to furnish the card," said Harish Acharya, secretary of India Bullion and Jewellers Association Ltd.
The association has approached the Ministry of Commerce to raise the amount to Rs 2 lakh. "Several of our members held a meeting with ministry officials to convince them to increase the limit. But we can't comment on it until it is implemented," added Acharya.
Rs 2 lakh Amount jewellers want the limit raised to
Unhappy buyers
Jigar dedhia, a Ghatkopar businessman
'Rs 50,000 is a very small amount. A buyer will end up purchasing items worth this much by taking just a couple of gold ornaments. The amount should be raised'
'Rs 50,000 is a very small amount. A buyer will end up purchasing items worth this much by taking just a couple of gold ornaments. The amount should be raised'
avinash rane, A banker
'If one goes to buy gold for one's wedding, the expenditure will certainly be more than Rs 50,000. Why should that be brought under scanner? Common folk like us save for years together to buy gold jewellery for marriage. There has to be further clarity on this regulation, instead of there being just a blanket rule like this'
