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HC reprieve till June 14 for jewellers who have not hallmarked gold ornaments

In a temporary reprieve for jewellers, the Bombay high court (HC) has directed the Union Ministry of Consumer Affairs, Food and the Public Distribution to consider the representation by a group of jewellers from Pune by May 15, who have challenged the January 15 order of the Centre which made hallmarking mandatory and prohibited selling and hallmark stamping of gold ornaments of higher purity (more than 22 carat)

Published on: May 10, 2021, 24:54:15 IST
By , Mumbai
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In a temporary reprieve for jewellers, the Bombay high court (HC) has directed the Union Ministry of Consumer Affairs, Food and the Public Distribution to consider the representation by a group of jewellers from Pune by May 15, who have challenged the January 15 order of the Centre which made hallmarking mandatory and prohibited selling and hallmark stamping of gold ornaments of higher purity (more than 22 carat).

HT Image
HT Image

Meanwhile, the Nagpur bench of the Bombay High Court hearing a similar petition directed the Centre not to take coercive action against any jeweller till June 14 for not hallmarking their jewellery by June 1 as stipulated in the January order. The order reduced the hallmark grades to three and henceforth gold jewellery will be available in grades of 14 carat, 18 carat and 22 carat only.

On April 29, a division bench of justice K K Tated and justice Nitin Borkar while hearing the petition filed by Pune Saraf Association through senior advocate Anil Anturkar and advocate Shubham Misar was informed that the January 15 order of the Centre was against Article 19 (1) (g) of the Constitution, which guarantees the right to practice any profession, trade or business. In light of this, the petition sought quashing of the January 15 order or stay on the order pending hearing of the petition.

According to the order, jewellers will be able to sell only hallmarked jewellery and artifacts made of 14, 18 and 22 carat gold from June 2021, violations will attract penalty and imprisonment of one year.

While arguing against the order, the association submitted that jewellers would suffer losses as they are prohibited from selling gold with high purity. It was argued that gold rings having purity between 23.5 and 24 carat was a source of acquisition of gold for people belonging to all economic classes and the prohibition on sale of 24-carat traditional jewellery would wipe out the cultural heritage of the state.

After the court was informed that a representation seeking provision of facilities of assaying and hallmarking centres for all the districts in Maharashtra was pending, the Court asked the centre to decide the same on or before May 15 and also permitted the association to approach the vacation court in the event the decision on their representation was adverse.

Meanwhile, a division bench of justice Sunil Shukre and Avinash Gharote at Nagpur directed the Centre not to take any coercive action against jewellers under BIS Act after All India Gems & Jewellery Domestic Council filed a petition through senior advocate Rohan Shah. The petition contended that the new regulation, which is to come into force from June 1, would affect nearly 5 lakh of jewellers in India.

The Council argued that 488 districts in India did not have hallmarking centres and as inter district travel was restricted due to Covid it would not be possible for jewellers to get the six thousand crores pieces of jewellery hallmarked by June 1 and would end up being liable for punishment under BIS Act.

The bench then directed the centre not to take any coercive steps against jewellers till next date of hearing on June 14. The petition at the Mumbai bench will also be heard on the same day.