8,000 Kg of Gold was Bought in Hyderabad using Banned Notes after Demonetization - chaprama | Insights from the world of Technology and Lifestyle


Sunday, December 18, 2016

8,000 Kg of Gold was Bought in Hyderabad using Banned Notes after Demonetization

Demonetization has given several new ideas to people who want to convert their black money into other assets. After demonetization news on November 8, Enforcement directorate now discovered that a whopping RS 2,700 crores were spent to buy 8,000 Kg of Gold in Hyderabad alone using the scrapped 500 and 1000rs notes during November 8 to 30. And also there was a fresh import of additional 1500Kg of Gold apart from that during December 1 and 10.

gold demonetization

During this period, there was a sudden surge in Gold price, especially in Hyderabad. People are convinced to buy a Gold biscuit for even Rs5 lakh as most of the people thought that Gold is an easy conversion program and is the more safe way to hide.

Enforcement directorate confirmed that Musaddilal Jewellers of Hyderabad is the major foul player in all this Gold-Scrap conversion and filed a case against the showroom.

Also read: Married Woman 500g and Unmarried 250g; Government impose Tax on Gold

Why Buying Gold with Black money is not a good idea?

After Government had placed several regulations on buying Gold, it is not safer and secure way to replace the black money. Many Jewellers are now facing several investigations and scrutiny after ED identified the foul play behind it. There are many ways you will be easily identified and investigated if you perform this illegal act. 

Also, when you want to buy Gold using the black money, you have to spend Rs 5lakh to buy one biscuit of Gold against Rs2.8 lakh market price. So, here you are losing more than 40% of your black money.

How Government knows if I purchase Gold?

  • When you visit the jewellery shop to buy gold, you will be under CCTV surveillance. So, all your transactions are recorded and stored. If Income Tax, Customs or Excise department conducts raid on the shop, you have already left required proof against yourself. The government has given proper instructions to all jewellery shops to provide CCTV footage to IT department for scrutiny whenever required.
  • Most people are unaware that Gold is a notified item under Sections 123 of Customs Act. So, if any Gold is seized from your custody, it can be termed to be smuggled unless you are able to produce documentary evidence for the legal import or procurement of that Gold. So, in a raid by Customs, you can be treated as smuggler and you may have to go to jail even.

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