5 min readNew DelhiUpdated: Aug 4, 2026 03:30 PM IST
A Telangana consumer commission has held a jewellery retail chain guilty of unfair trade practice after finding that it sold a silver tumbler declared to be 85 per cent pure, but an independent purity test found it contained only 80.95 per cent silver. The commission directed the company to refund Rs 104 collected in excess, reimburse Rs 50 spent on the purity test, and pay Rs 13,000 towards compensation.
President G Nagaraju and member B Raji Reddy were hearing a complaint filed by a 64-year-old consumer activist, who alleged that the jewellery chain sold him a silver tumbler with a lower silver content than what was declared in the invoice and also sought action against its alleged misleading advertisements.
“The opposite party (jewellery retail chain) has indulged in unfair trade practice; as such, the opposite party is directed to return the excess collected amount of Rs 104 and Rs 50, which was paid towards testing of silver,” the July 17 order read.
‘Doubted purity claimed by store’
The activist claimed that he enrolled in a specific scheme launched by the retail chain which had an 11-month tenure, by paying the first instalment of Rs 2,500. However, he alleged that after learning that the scheme was allegedly being run without government permission, he stopped making further instalments.
After the scheme ended, he adjusted the Rs 2,500 already paid towards the purchase of a silver tumbler on January 16, 2025. The tumbler weighed 26.530 grams, and he paid the balance amount of Rs 149, taking the total purchase value to Rs 2,650. The invoice declared the purity of the silver as 85 per cent.
The complainant alleged that although the invoice disclosed 85 per cent purity, the jewellery chain had effectively charged him at the rate applicable to 100 per cent pure silver. He further claimed that he had been influenced by the company’s advertisements while making the purchase.
Suspecting the purity, he got the tumbler tested at Century Hall Markings, Hyderabad, on January 27, 2025, after paying Rs 50. The test report allegedly showed that the silver content was only 80.95 per cent. Aggrieved, he approached the commission alleging deficiency in service and unfair trade practice.
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‘Could have re-tested’
The commission highlighted that if the jewellery retail chain believed that the purity test report was not genuine, it was for them to establish the same by taking steps such as retesting or by examining an expert. Since it failed to do so, its objection to the report could not be accepted.
The commission also found that the invoice did not disclose material particulars such as making charges, wastage charges or the value of other metals mixed with the silver. It rejected the company’s argument that such non-disclosure was a common market practice, observing that an illegal or deceptive practice cannot be justified merely because it is widely followed.
Calculating the difference between the declared purity (85 per cent) and the actual purity (80.95 per cent), the commission concluded that the jewellery chain had collected Rs 104 in excess. It accordingly directed the company to refund Rs 104, reimburse Rs 50 spent on the purity test, pay Rs 10,000 as compensation for mental agony, and Rs 3,000 towards litigation costs.
Jewellery company’s defence
The retail jewellery chain, represented by advocates Saivamshi Vangipuram and Shaik Salam who submitted that in the invoice it is clearly and transparently mentioned that the purity of the silver tumbler is 85 per cent, and the rate applied is Rs 97 per gram. The lawyers categorically denied any misrepresentation in this regard and argued that the purity declaration was made in good faith and in accordance with standard trade practice.
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It was further added that it is out of their knowledge that the silver tumbler was sent for a purity test and was done in their absence. The retail chain further added that as per market practice, non-hallmarked silver articles can be sold with proper disclosure of purity, which was duly done in this case. Therefore, there is no concealment or overstatement of quality, the lawyers added.
It was further submitted that the rate is not exclusively for the silver metal content, but includes manufacturing and business costs and claimed that it is false to allege that the jewellery retail chain has given any false advertisements.
Concerning the scheme, the lawyers submitted that the allegation that the scheme lacked Government approval is irrelevant and misleading, since it is a voluntary consumer benefit scheme run by the jewellery house for its customers and does not claim to be a government scheme.
For consumer-related grievances, individuals may contact the consumer helpline in their respective states and union territories (Telangana: 1800-4250-0333) or call the National Consumer Helpline at 1915 for assistance.
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