Going for shopping on DhanterasIJ Better watch out for what you are buying especially if it is gold because markets are flooded with substandard gold. That’s the possibility and a blunt reality of the glittering world of yellow metal that has always been the most precious items usually purchased by people in Dhanteras and Diwali.
As per the regulations to safeguard consumers buying gold, it is mandatory for licensed jewellery shop owners to inform a buyer about the standard of gold being sold to him and for the convenience of the customer it is a rule to display information regarding purity of gold (see box) to dispel any doubts before a gold object changes hand. But compliance is hard to find and so is the valid justification for not complying.
A chart clarifying purity of gold as per the numbers marked on a product is difficult to find at most of jewelry shops. Notably, there are about 522 licensed entities across Jharkhand in two categories of licenses issued for trading in gold.
“There is a provision to display the purity and fitness of product of hallmarked jewelry at shops. And there is a provision to keep licensed shops under continuous surveillance to ascertain compliance,” said Head of Bureau of Indian Standard (BIS) in Jharkhand, JA Siddiqui.
lack of awareness would have cost people quite a buck however it’s a loss which most of the shopkeepers are not concerned about. Brazenly, they refer the product as of high quality and seldom produce authentic source to corroborate their claim of standard. As per the provisions, deviations in the degree
of purity of the metal and non-conformance to the system are punishable offense under the BIS Act. Worse situation is that several smaller jewelry shops remain off the hook always.
“Not many retailers come forward for obtaining license. The problem is with small retailers who purchase products from big cities. They might be purchasing certified goal however there is nothing to assess the product they sell in Jharkhand,” said Suresh Vagadia, CEO of the only Assayer in Jharkhand, Pratik Hallmarkers Pvt ltd.
Missing surveillance mechanism seems to be the reason behind the murky retail trade of gold. The BIS’ Jharkhand unit started working independently since January 1, 2014 however the only branch of the certifying authority is struggling to get land for setting up office in Ranchi and currently operates from Jamshedpur. Jharkhand was earlier monitored by Patna branch of BIS.
“Office at Ranchi would have helped in maintaining optimum level of surveillance. So far we have collected about 13 samples from hallmark license holders in Jharkhand,” maintained Siddiqui.
According to BIS officials, the Directorate General of BIS had requested the State government to provide land for setting up office but so far the directorate is waiting for a response from the government side.
The letter was written in April, 2014 with the objective of shifting the branch which is currently being run from a rented building in Jamshedpur.