Published On : Sun, Nov 13th, 2016

Bullion traders to shut shop till November 14

nagpur-jeweelersNagpur: The bullion market in Nagpur wore a deserted look on Saturday following refusal by the traders to accept 500 and 1,000 denomination notes. Bullion traders complained that customers are producing old notes though they have ceased to be legal tenders. Hence to avoid any controversy, the traders have decided to shut shop till Monday.

However, small shops in lanes and by lanes of the city transacted small amount of business even as big showrooms downed their shutters completely.

Many bullion traders have decided to close down their shops till new currency notes of higher denomination are in circulation.

As traders are demanding a phtocopy of KYC and PAN card, many customers have turned their backs on the purchase of yellow metal in the past few days even though wedding season is at its peak.

President of Sona-Chandi Oli Committee, Ravikant Harde told media that gold sale occurs only in multiples thousands and lakhs. As a result, many customers with excess of cash are furnishing high value notes to avoid the trouble of producing photocopy of KYC or PAN card.

Vice-president of the Association, Purushottam Kawle said many people are coming with black money in their pockets to purchase gold. When ample currency is circulated, the customers would come back for the purchase of yellow metal, he informed.

Secretary of the Association, Rajesh Rokde said it is not possible to sell gold with the notes which have ceased to be legal tender. Following government decision to phase out notes of 500 and 1,000 denomination, the government officials and bullion traders were completely rattled. They were scared if they deposited the amount in banks, they would have to pay income-tax along with the fine. So, they decided to purchase gold as an alternate source of investment.

Taking advantage of the customers’ predicament, the bullion traders, as a result, jacked up prices of gold in the range 38,000 per 10 kg and 40,000 per kg.
Meanwhile, according to sources, I-T department sleuths have launched a probe of the bullion traders who ratcheted up the prices exorbitantly.

Sources further said that many traders made a quikc buck by selling gold upto wee hours on November 9. Though the bullion traders ramped up the prices of gold beyond expected limit, they were able to sell enough quantity of gold despite the fact that notes of 500 and 1,000 denomination ceased to be legal tenders.This has forced I-T sleuths to launch probe into their transactions.