BREAKING NEWS

How Illegal Gold Trade is ruling the roost in Kadapa

Apparently, Chief Minister Y.S. Jaganmohan Reddy’s home district of Kadapa is witnessing unaccounted gold worth nearly Rs. 5 crore being sold every month illegally, without any bills or receipts.
 
Proddatur is the second-largest gold market in the district. Gold jewellery is brought here from Chennai, Bangalore, Coimbatore, and other places without paying any taxes. The same is sold at open market price, with traders making huge profits in the process. Such illegal trade has not subsided despite frequent raids by the police department. 
 
In April 2019, Yerraguntla police seized 5.7 kg of gold biscuits from a man. In September of the same year, police seized 2-kg gold from a person in Proddatur. Another 700 grams of gold and 31 kg of silver jewellery were seized from two persons in October. Those carrying gold jewellery could not produce any receipts. Eventually, the Police handed them over to officials of the Commercial Taxes Department.
 
Recently, Proddatur and Jammalamadugu police again seized 5.6 kg of gold jewellery in two separate incidents. While Jammalamadugu police seized 2.7 kg, Proddatur Rural police seized 2.9 kg of gold jewellery. The Police then followed the same procedure and handed it over to the Tirupati Income-Tax authorities.
 
According to B. Rammohan Rao, vice-president of the Andhra Pradesh State Gold and Diamond Merchants Association, those caught with gold jewellery are apparently not real traders. They do not have any trading licenses. They just bring 2-3 kg of jewellery to the district and sell the same to small traders in towns. 
 
While this illegal business boomed earlier, many traders say it has come down following the implementation of GST. However, what many are appalled at is how this illegal trade is being carried out in the CM’s home district despite regular and stringent raids. 

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