Karbi Anglong’s once-thriving jewellery trade reels under smuggling, regulatory lapses

Diphu, Sept 10: The jewellery business in Karbi Anglong, which once held great promise for cultural and economic growth, is now in serious trouble due to issues such as gold smuggling and a lack of adherence to important regulations.

Local jewellers and officials have warned that these issues could hinder progress and erode trust among consumers, which is crucial for the local economy.

Karbi Anglong has gained notoriety for gold smuggling, with numerous significant busts occurring over the past few years that have directly affected the genuine jewellery sellers.

Recently, local police auctioned 8.133 kg of seized gold, generating over Rs 6.63 crore for the State. This gold was linked to a 2021 police case and highlighted how smuggled gold was flooding the market, making it difficult for ethical jewellers to compete and putting them at risk of legal issues.

Past incidents showed an even darker story. In September 2022, police worked with the Central Reserve Police Force to stop a bus and seized 2.323 kg of gold, arresting three people. Just the year before, in December 2021, police confiscated 49 gold bars weighing 8 kg valued at over Rs 4 crore, leading to two arrests. These successful operations revealed a worrying trend: smugglers are taking advantage of the area’s weak borders and remote locations to transport illegal gold, often hidden in vehicles or disguised as legitimate goods.

Authorities stressed that the jewellery businesses must keep detailed records to avoid getting caught up in smuggling investigations, but many are fearful due to the possibility of raids and confiscations. Not following the rules can lead to severe consequences, such as hefty fines or even jail time. Adding to these issues is the poor compliance with gold hallmarking regulations, which were introduced to guarantee the quality of gold and protect customers.

As of 2021, only 34% of jewellery shops in Assam were registered with the Bureau of Indian Standards (BIS), and West Karbi Anglong had no such registered businesses at all. Although some improvement has been made, the numbers remain worryingly low. This lack of compliance places the customers at risk of receiving subpar gold, which damages trust in local jewellers and could lead to stricter government actions.

Jewellers with annual sales of up to Rs 40 lakh are not required by law to follow the hallmarking rules, but they are encouraged to register voluntarily. However, many small jewellers in Karbi Anglong complain about high costs and complicated paperwork that make compliance difficult.

The Karbi Anglong Autonomous Council, which oversees the area, requires additional permissions and local taxes for businesses; however, adhering to these regulations can be challenging due to poor enforcement. In addition to mandatory Goods and Services Tax (GST) registration for sales over Rs 40 lakh, businesses must also comply with local laws, which can be quite overwhelming. This complicated process can deter new businesses from starting and slow down growth.

To help address these challenges, efforts are underway to raise awareness about regulations and establish task forces with neighbouring districts to combat gold smuggling. The Taxation Department of the Karbi Anglong Autonomous Council is responsible for addressing the connections between gold smugglers and jewellery shops that are not following the rules.