PMLA scare upsets Dasara gold business – Times of India

Aurangabad: The gold market in the city witnessed an average to slow business in Dasara, the reports from stores across the city implied.

The shop owners say that demonetisation, goods and services tax implementation and Prevention of Money Laundering Act (PMLA) amendment 2016 was the reason behind falling gold purchase. On the other hand, the festive real estate bookings has also seen a dip because of soaring prices.

Lalchand Mangaldas Soni jewellers at Amarpreet Chowk were expecting for satisfactory sale till Saturday afternoon. The shop owner Uday Soni said, “The uncertainty of the government policies has instilled fear among gold buyers. Our business has dropped by 15-20% this year. Earlier people use to invest in gold and now most of them prefer going for foreign tours or property investments.”

Meanwhile, the Tanishq outlet at Mondha Naka saw a huge footfall of customers. The store manager Kaushik Saha informed that they are seeing a 50% hike in purchase this festive season but the liquid cash flow is restricted. Offers like 25% off on making charges and 25% off on diamond bill value have been successful to attract prospective buyers.

“However, most of the sales have been in exchange of old gold jewellery as customers want to avoid the PMLA that requires them to show a PAN card for gold purchase above Rs 50,000,”Saha said.

Madhavi Dhavale, training and development manager at Vaman Hari Pethe and Sons, Motiwala Nagar said. “The dull business can be attributed to the increase in gold prices. On Dasara, the 24 carat gold was at Rs 30,100 for ten grams. Irregular rain has also restrained agriculture to invest in gold this year. However, the key reason for the slow business is the insecurity in the market owing to the government’s decision.”

The local body of Confederation of Real Estate Developers Association of India (Credai) is feeling the heat of the change in economy but they are positive that the situation will soon improve.

Credai Aurangabad president Ravi Wattamwar said, “The builders and developers are hoping for 250 bookings till Diwali, this year. The financial disciplines brought in by real estate (regulation and development) Act 2016 and GST has led to the rise in prices by up to 15%. However, the customers are coming in terms with that. On this auspicious occasion, over 125-150 customers will take possession of the new homes and city will see over 100-90 real estate bookings.”

Source Article from http://timesofindia.indiatimes.com/city/aurangabad/pmla-scare-upsets-dasara-gold-business/articleshow/60895684.cms

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