Ludhiana: Jewellers under I-T scanner after two days of gold rush

Following PM’s announcement on demonetization Tuesday night, Ludhianavis went on a gold purchasing spree that continued till Thursday.

Written by Raakhi Jagga | Ludhiana | Published:November 11, 2016 5:18 am
rs 500 ban, rs 1000 ban, income tax, gold raid, currency ban, atm, banks opens, ludhiana dcp, banks open, bank rush, old notes exchange, atm cash, indian express news, india news, punjab news Income Tax Department Building. (Express photo by Vasant Prabhu)

Income tax department on Thursday conducted a survey on a few of Ludhiana following complaints that they were selling gold at a price higher than the market and also to check bulk purchase of gold by customers.

Following PM’s announcement on demonetization Tuesday night, Ludhianavis went on a gold purchasing spree that continued till Thursday.

Sources said income tax surveys were conducted at Nikkamal Jewellers on Mall road, Jamna Das Nikkamal Jewellers at Fountain Chowk and a few others.

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Though the market price of gold per 10 grams is Rs 33,700, complaints were reported to tax officials that jewellers had sold gold at as high as 55,000 per 10 gram on old currency notes.

Late in the evening, Anand Sikri, president of Ludhiana Jewellers Association, issued a press statement. “No jeweller is selling gold at prices higher than the market prices. Because of the wedding season, demand is high. However, we have enough gold to supply to the clients,” it said.

On Thursday morning, long queues were seen outside all the banks in the city, with people carrying polybags or handbags with Rs 500 and Rs 1000 currency notes. Some were depositing money in multiple accounts.

Interestingly, in order to get rid of the old currency notes, a number of residents rushed to pay off old outstanding dues and bills as well. A cloth merchant flew to Mumbai to get a three-year-old payment of Rs 62 lakh from a firm as its owner was ready to pay in now banned Rs 500 and Rs 1000 currency notes.

The client had not paying him his money all these years but on Thursday, he himself called up the city trader.

GATS Urban Co-operative Thrift and Credit Society Limited, a private financing company, also got multiple installments as part of loan repayment from customers, instead of just one monthly instalment. Nitin Tayal from the company said, “We deal in providing small loans up to Rs 5 lakh. In order to use the old notes of Rs 500 and 1000, a number of clients are paying off their entire loan in one go.”

In addition to this, the company has also floated a scheme of doing FDs for 3 to 6 months @ 7.5% per annum and 12.75% per annum interest for doing FD for a period of 5 years. This was also to attract old denomination notes and enhance business.