March 5: The first auction of rough and cut diamonds in 20 years, organised by the customs department, evoked only a lukewarm response, with barely 40 traders making bids. However, officials said the Preventive Commissionerate of Customs expects to collect about Rs 50 crore through the auctions of seized diamonds, precious stones, studded jewellery and fine gold jewellery by the month-end, said Commissioner of Customs, S S Sekhon.The Mumbai Commissionerate has been authorised to conduct an auction of seized jewellery and bullion from all over India, and has been conducting a series of auctions this year in a bid to mop up more revenue. Today's auction in Kohinoor Hotel, Prabhadevi, saw barely 40 traders make bids for the stones, classified in lots. Only one lot of a total of a 105 lots came under the hammer. Twenty bids were accepted subject to the Commissioner's approval, for which the prices came close to the reserve price. Of a total value of Rs six crore worth diamonds put up for auction today, bidsworth less than Rs one crore were accepted.Since the bidders had already inspected the diamonds two days ago, only bidding took place at Prabhadevi today. Several bidders insisted that as and when a bid is completed with the fall of the hammer, the successful bidder must be allowed to affix his seal of the goods. Since the diamonds were not in the premises at all (they had been kept back in the Customs House in South Mumbai), additional commissioner of customs, T H K Ghauri suggested that the auctioneers' seal would be affixed later in the day on each successful bid.One of the bigger bids was for a singular cut and polished diamond weighing 1.58 carat, at Rs 1,50,000 per carat. Many cut and polished diamonds went for Rs 15,000 per carat. However, several of the lots went without bidding at all, with participants complaining that the starting price was too high.Additional Commissioner Ghauri, who was initially very accommodating, later lost his cool. "These valuations have been done by experts fromthe trade. Nor are officers of the department imbeciles," he remarked. The general slowing down of the economy and an international downward trend in the diamond trade is responsible for today's response, officers said. So, even as 40-odd traders thought it worth their while to pay Rs one lakh as entry fee for the auction (a refundable sum), not many of them thought the offers were good enough. Ghauri himself said today's auction was a case of "testing the waters" and the real thing was yet to be seen. Another auction will be held later in the month, which, officials hope, will bring in the big-wigs of the trade.
