Chennai:
Consumers beware,
your favourite jeweller might be a cheat. If one goes by the findings
of the Bureau of Indian Standards (BIS), gold jewellers are unjustly
becoming richer and richer by cheating unsuspecting buyers, palming
off poor caratage jewellery by offering much less than its real worth.
According to BIS, many Chennai-based jewellers cheat their customers
by at least Rs 500 per every 10 gms of gold jewellery sold. The unjust
enrichment even goes up to Rs 825/10 gms in certain cases.
As per the survey conducted by BIS and the Federation of Consumer
Organisations of Tamil Nadu and Pondicherry, 73 per cent consumers get
just 88 per cent value of the money they pay towards the gold cost;
the balance 12 per cent goes into jewellers deep pockets. The
survey covered jewellery items purchased from 15 small- and big-retail
outlets located in different areas of Chennai. And the items tested
are common- and large-turnover items like gold chains, rings, ear
tops, bangles and bracelets.
Out of the 15 samples purchased and tested, only four samples were
found to be of the claimed purity. Eleven out of 15 samples were of
much lesser purity than 22 carat. On an average the purity was less by
11.82 per cent and in one case the purity was less by as much as 19.42
per cent.
This is a trend not confined to Chennai alone. In Jaipur, a BIS survey
revealed that consumers of gold get only 91 per cent of the value they
pay for in hard cash. At an average Jaipurians are shortchanged at
least by 13.9 per cent in gold purity. While cheating is rampant in
this trade the extent differs from place to place. In Delhi and Mumbai
it is much higher than other cities, says a BIS official.
The magnitude of such cheating will surprise anyone who looks at the
annual Indian demand for gold. According to the World Gold Council
gold demand in India during 2000 was 533.7 tonnes, and during the
first nine months of this year the demand for gold was put at 458.4
tonnes.
Industry sources say around
85 per cent of the total demand is for jewellery, and the balance goes
towards medical, industrial and other applications. The four southern
states account for 30 per cent of Indias gold jewellery demand.
Concerned by the large-scale duping, BIS, in 2000, decided to
introduce quality certification of gold jewellery called hallmarking.
Under the scheme, jewellers have to voluntarily register themselves
with BIS for selling quality gold to their consumers, upon which they
will be provided with BIS Certification, conforming to the
specification norms of IS 1417.
Such registered retailers would get their wares tested by BIS-approved
assaying centres. And the assaying centres will hallmark those items
that conform to the above standards. This mark contains BIS corporate
logo, fineness that represents the purity of gold, the assaying centres
logo, year of marking and the jewellers logo.
While such hallmarking is
compulsory in Europe, in India it is not, says P Rabindranathan,
deputy director general, Southern Region, BIS. Unlike consumer
durables, in which case samples are tested and the manufacturer is
allowed to have the BIS certification logo on all his products,
jewellers have to send each and every item they want to be certified
to the assaying centre. This is done to ensure quality of the gold
sold to the public, says a CEO of an assaying centre.
Rabindranathan says the cost of getting BIS licence is Rs 29,900 plus
Rs 30 to Rs 50 per article charged by the assayer. At an average it
would cost just Rs 40 per piece and the customer will not mind parting
with the sum if he is assured of the quality.
BIS is conducting a nationwide survey and would make public the
findings just to educate consumers about availability of hallmarked
jewels. We dont have any punitive powers, nor will we initiate
any legal action against the cheat jewellers, says a BIS official.
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