Ludhiana: Consumer panel slaps ₹1-lakh fine on jewellery firm over misleading purity claim

The Ludhiana Consumer Commission fined Kalyan Jewellers ₹1 lakh for misrepresenting gold purity, ordering payment within 30 days or face 8% interest.

Ludhiana The District Consumer Disputes Redressal Commission, Ludhiana, has imposed a composite penalty of ₹1 lakh on Kalyan Jewellers for selling gold jewellery of lower purity while representing it as 22 carat and directed the firm to pay the amount within 30 days, failing which it will attract 8% annual interest from the date of filing of the complaint until realisation.

The order was passed on a complaint filed by city resident Arshdeep Singh. (HT File)

The order was passed on a complaint filed by city resident Arshdeep Singh, who alleged that the company misrepresented the purity of a pendant and a stud purchased by him and his mother in July 2021. After examining documents, lab reports and submissions from both sides, the commission held that the firm indulged in unfair trade practice and failed to disclose purity and specifications at the time of sale.

According to case records, Arshdeep bought a pendant on July 1, 2021, for ₹42,719 after being assured it was made of 22 carat gold. A few days later, his mother, Sukhbir Kaur, purchased a stud for ₹47,000 under similar assurances. Neither item bore a hallmark stamp.

When doubts arose, the jewellery was tested at an authorised facility, LD Gold Lab, Ludhiana, on August 27, 2021. The lab found a purity of 75.21%—equivalent to 18 carat gold—far below the 22 carat purity mentioned in the invoices.

Despite bringing the issue to the notice of showroom staff and following up with emails and a legal notice, the complainant allegedly received no response, prompting him to approach the commission.

The company argued that the products were polki jewellery, a traditional category exempt from mandatory hallmarking under the Hallmarking of Gold Jewellery and Gold Artefacts Order, 2020. It further submitted that polki items are typically sold at MRP and may not carry hallmark stamps. The jeweller also claimed that the invoices clearly mentioned the nature of the products and that the buyers were fully informed.

The commission rejected these claims, observing that the invoices themselves specified the purity as 22 carat, contradicting the jeweller’s arguments. It also noted that price tags in the showroom did not display purity, quality or weight details, depriving consumers of essential information and violating the Consumer Protection Act, 2019.

Stating that the jeweller “cannot take a U-turn after mentioning 22 carat purity in invoices,” the panel held the firm liable for misleading representations. It concluded that the complainant suffered financial loss and mental harassment due to the misrepresentation.

The commission, headed by president Sanjeev Batra and Member Monika Bhagat, ordered the jeweller to pay the compensation within 30 days, failing which the amount will carry 8% annual interest from the date of filing of the complaint until realisation.