BOMBAY, Jan 13, Reuter: Bullion dealers, Jewelers and Goldsmiths began a three-day closure of shops in India’s Financial Centre Bombay on Friday to protest against what they called harassment from customs officials.
Shantilal Sonawala, President of the Bombay Bullion Association, said the closings in Bombay. would also cripple bullion trading across the country.
Sonawala said the protest was triggered by overzealous officials trying to curb gold smuggling.
“Officials are not only seizing documents from dealers but are insisting on producing the sellers of gold before them as proof, which is very embarrassing to the public,” he said.
Dealers were afraid of buying gold even from genuine sellers, he said.
The price of gold shot up to 3,340 rupees (223 dollars) per 10 grams on January 12 from 3,150 (210 dollars) a month ago. The record is 3,600 rupees (240 dollars), reached in November 1987.
India stopped the import of gold 40 years ago.
India’s annual demand has been estimated at more than 200 tones, with only a third of it met through recycled gold and smuggling accounting for the rest, trade sources said.
Article extracted from this publication >> January 20, 1989
