Jewelers Sold 15 Tonnes Gold on Nov 8-9 After Note Ban Announcement

December 08, 2016 11:38
Jewelers Sold 15 Tonnes Gold on Nov 8-9 After Note Ban Announcement

"Jewelers sold 15 tonnes of gold ornaments and bars, worth around Rs 5,000 crore, on the intervening night of November 8 and 9 after the government demonetized Rs 500 and Rs 1,000 denomination notes", said Surendra Mehta, national secretary of India Bullion & Jewellers Association (IBJA).

IBJA has 2,500 jewelers registered with it from across the country.

“We estimate gold worth Rs 5,000 crore, or around 15 tonnes, was sold between 8 pm on November 8 and 2-3 am the next  the next day, after the PM’s demonetisation announcement,” Mehta told ET.

He said "nearly half of these sales happened in Delhi, UP, and Punjab. He claimed that only 1,000 of around 6 lakh jewelers across the country had accepted Rs 500 and Rs 1000 notes in exchange for gold on the night of November 8."

"IBJA has requested the government to take strict action against erring jewelers as they had brought a “bad” name to the entire trade", Mehta added.

The figure of 15 tonnes is important as it values to over a fifth of the monthly sales of gold in a year. Indians spend around 800 tonnes of gold each year, though this year the figure is expected to be much lower at 500 tonnes, especially after the crackdown on trade and demonetization.

The central excise intelligence unit of Bhopal had sent tax notices to 650 jewelers, demanding them to state the amount sold between November 7 and 11.

Also Read: "Married Women can Store 500gm Gold, Unmarried Can Store 250gm"- Govt


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