The series of raids conducted by the Income Tax (IT) Department on the major jewellery shops in the State following the demonetisation has caused nightmare for the jewellers in the twin city of Cuttack and Bhubaneswar.
Around 20 jewellery shops were raided in the twin city within a week after hoarding of black money was reported following the demonetisation of high-value currency notes from November 8 midnight.
Reliable sources said that many jewellery shop owners have allegedly sold gold to the customers at higher prices in exchange of receiving Rs500 and 1000 currency notes.
In some shops, the customers have been assured to get jewelleries in phases later as there was less stock of gold ornaments in the showrooms.
According to rule, producing PAN card number is mandatory for the customers in case of purchase of jewelleries worth over Rs50,000. However, the rule was allegedly violated after the demonetisation.
Sources said that some jewellery shop owners were not able to show the appropriate details of the gold purchased and on the stock to the IT sleuths during the raids.
It is suspected that some black money hoarders have been buying jewelleries by giving old Rs500 and Rs1000 notes in the shops.
Sources said the IT Department would continue raids on a number of jewellery shops targeting black money hoarders.