Author: Paul Ploumis01 Aug 2014 Last updated at 08:21:12 GMT
NEW DELHI (Scrap Monster): The Delhi Bullion and Jewellers Association has challenged the relaxations announced by the previous government on the country’s gold import regulations. The trade body has filed a writ petition, the hearing of which is scheduled to be held on August 7th.
Earlier in 2013, the government had introduced the 80:20 gold import norms, which made mandatory for all importers to export a fifth of the total imports. According to the rule, state agencies and nominated banks were allowed to supply gold to local jewellers, whereas star and premier trading houses were allowed to import gold only for export activity.
The government during the last days of its tenure had relaxed the rule, permitting star and premium trading houses to access domestic gold market. More importantly they were allowed to import a lot based on the total monthly imports for the past two years. At the same time, the permitted quantity of gold import by state agencies and banks were restricted by linking them with the total gold supplied to exporters during the past three years.
According to the Association, the government’s decision led to the sudden surge in gold imports during the month of June. They alleged that the previous government had hastily made the decision in order to favor large trading houses and corporate business groups. The Association demanded necessary action against concerned authorities for violation of model code of conduct. It further asked the court to declare the policy as null and void.
The gold imports during June ’14 had crossed double digits for the first time in thirteen months. According to GJEPC data, 14.33 metric tonnes of gold were imported in June ’14, 74% higher when compared with 3.74 metric tonnes imported during the same month last year.