Mandatory Hallmarking On Gold Jewellery

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GOLD FRAUD

Gold fraud can be in many forms like
Not accurate karat, Colored paint, Less weight-age.
They can also be gold plated, heavy gold electroplate and gold filled.
Gold fraud are often ignored in India.
In the past, there have been instances where a person was fooled with fake gold and was lured to pay the original price for it.
In 2018, Times of India report mentioned,
A gang of nine people pledged 2 Kg fake gold ornaments with five different banks.

From January 15, 2021, no jeweller will be allowed to sell gold jewellery or artefacts without hallmarking.
For this, a notification will be released by the Department of Consumer Affairs and a period of one year will be given for its implementation.
BIS has been running a hallmarking scheme for gold jewellery since April 2000 but hallmarking of gold is voluntary as of now.
Once the notification is issued, it will be compulsory for all jewellers selling gold jewellery and artefacts to register with BIS and sell only hallmarked gold jewellery and artefacts.
A new Bureau of Indian standards (BIS) Act 2016 has been brought into force with effect from 12^thOctober, 2017.
The Act establishes the Bureau of Indian Standards (BIS) as the National Standards Body of India.
The government had made a provision of making hallmarking mandatory under Section 14 and Section 16 of the Bureau of Indian Standards Act, 2016.

According to the Department of Consumer Affairs, as on October 31, 2019,
There are 877 assaying and hallmarking centres spread in 234 district locations across the country.
So far, 26,019 jewellers have taken BIS registration.

There is a provision for a fine of a minimum Rs 1 lakh
Also up to five times of the value of article As well as one year jail under the BIS Act.