Jewellers hail Govt’s move to remove industry from PMLA

MUMBAI: Welcoming the Centre's decision to remove the gems and jewellery dealers from purview of the reporting requirement under the Prevention of Money Laundering Act (PMLA), the industry on Saturday termed it as a positive step which will boost the festive sales.

"This is a great news for the industry and we are thankful to the government for this decision. This is a positive step and will help boost the market sentiment. We look forward to good business during festive season," All India Gems and Jewellery Trade Federation (GJF) Chairman Nitin Khandelwal said here.

The government rolled back August 23 notification that notified dealers in precious metals, precious stones and other high value goods as persons carrying on designated business and professions under the Prevention of Money Laundering Act, 2002, on Friday night.

Under the PMLA, every reporting entity is required to maintain record of all transactions of value exceeding Rs 10 lakh, all cross border wire transfers of more than Rs 5 lakh and all purchase and sale of immovable property of Rs 50 lakh or more.

Kalyan Jewellers Chairman and Managing Director T S Kalyanaraman said this decision will boost the overall sentiment in the trade.

"We welcome the decision to extend the provisions of PMLA from the present limit of Rs 50,000 to Rs 2,00,000 in the case of jewellery purchases," he added.

ANMOL Jewellery founder Ishu Datwani said its a big relief and the timing is right as it is just before Diwali.

India Bullion and Jewellers Association Ltd. (IBJA) Director and P N Gadgil Jewellers Chairman and Managing Director Saurabh Gadgil said the industry has been suffering since the industry came under the ambit of PMLA. "KYC for Rs 50,000 or over worth jewellery purchase was too low to attract PMLA. This is a positive step by the government and will be a big boost not only for the jewellers but also for the customers," he added.

Director and former Chairman of GJF Sreedhar G V said business was suffering and witnessed lacklustre demand during the Navratras, however, the industry now can look forward to good business during Diwali.

KPMG India Partner, Indirect Tax, Harpreet Singh said this decision is definitely a good news for the sector.

"This announcement is well timed as it is likely to boost the pre-diwali sales. Also, this relaxation would encourage free trading in the sector, without any apprehension of doing KYC compliances in the mind of the customer," he added.

Under the PMLA Act, every reporting entity is required to maintain record of all transactions of value exceeding Rs 10 lakh