The theft of 5 kg of gold while being transported by bus in Nellore on Thursday throws light on the fact that many jewellers often transport gold with poor security.
While corporate jewellery stores make purchases of gold and gold ornaments through online cash transfers, many smaller players buy unbilled gold with unaccounted money and sell ornaments without bills, according to sources in the trade.
In most such cash transactions, gold is transported by cars, buses and trains, sources said.
Some jewellers even purchase gold ornaments from property offenders at one-third of the market price, melt them and remake ornaments for sale without bills.
''More than 70 per cent of ornament sales take place without bills,'' one source said.
Manufacturers from places such as Chennai and Coimbatore visit retail shops in south coastal Andhra Pradesh on a regular basis and supply ornaments for payment of a cash advance and take the remaining payment later with proper bills.
However, in case of an emergency requirement, couriers are used to carry cash by bus or train and return with the specially ordered jewellery for individual customers. ''We take the risk of carrying cash as the process has been going on smoothly for decades,'' said Mr Vemuri Satyanarayana of Vemuri Jewellers.
''Gold purchases are made through banks through cash transfers online. We pay VAT to the government on all purchases,'' Prakasam District Gold and Silver Merchants Association convenor Tata Prasad told The Hindu .
''Our stocks are replenished by special courier services from the manufacturing unit to corporate showrooms with proper waybills,'' said Tata Goldplus Branch Manager Boyapati Naveen Chowdhary.
However, one police officer said, most merchants in the gold and jewellery business throw caution to the wind while importing jewelry.
Evasion of sales taxes and customs duties is normal in the business and most merchants prefer private travel as they are not under the scanner of the police.
``Most of them carry huge stocks without paying bills. It is only when jewellery is stolen that any thought is given to the legalities,’’ he said.
Gold and jewellery is known in business circles as `zero business,’ as most traders evade taxes.
--Additional reporting
by P. Samuel Jonathan
Gold purchases are made through banks through cash transfers online. We pay VAT to the government on all purchases
Tata Prasad
Prakasam District Gold and Silver Merchants Association convenor
