ED to examine gold deals; documents mandatory for transactions above Rs 10 lakh


T J Sreejtih

The Enforcement Directorate (ED) will have the authority to conduct detailed investigation if gold or money related to gold deals were seized without proper documents. The ED has started serving circulars to the jewellery owners in this regard.

Enforcement Directorate | Photo: PTI

Kochi: The Centre has tightened its grip in the jewellery industry including the transactions of gold ornaments. The entire jewellery industry in the country has been brought under the Prevention of Money Laundering Act (PMLA). The Ministry of Finance issued an order pointing out that the jewellery transactions from December 28, 2020, will come under the PMLA.

The Enforcement Directorate (ED) will have the authority to conduct detailed investigation if gold or money related to gold deals is seized without proper documents. The ED has started serving circulars to the jewellery owners in this regard.

Documents required for above Rs 10 lakh

If any jewellery transactions worth over Rs 10 lakh takes place, its documents should be kept. This should be produced before the ED, if asked. With this, the jewellery owners should keep record of all transactions.

Imprisonment upto 7 years

If they fail to produce documents, they will be awarded 3-7 years of imprisonment apart from attaching their properties. At present, 82.5 percent of the value of the seized gold and money is paid to the government. As PMLA is enforced, they will also have to face investigation.

Don’t depict merchants as black money holders

Adv S Abdul Nassar, the director of All India Gem and Jewellery Domestic Council, said that the circular that depicts the jewellery merchants, who engage in only legal transactions, as black money dealers should be withdrawn. This will only help to drive away the customers from the merchants who have all licenses and to encourage illegal trade, he added.

It is really despairing that the ED failed to find out where the gold smuggled through airports is taken to. The law depicts all merchants as black money dealers and it should be withdrawn, he stated.

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