KADAPA: There are reports of unaccounted gold worth between Rs 2 crore and Rs 5 crore being sold in Kadapa district every month 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 police.
For example, 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 the gold and jewellery could not produce any receipts. 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. Those carrying them could not produce any documents related to the jewellery. Police then handed them over to the Tirupati Income Tax authorities.
Proddatur town in Kadapa district is famous for its gold trade. Traders from different states come here to buy gold and gold jewellery. There are allegations that some people are using the town to sell illegally and make additional profits.
Bushetti Rammohan Rao, vice-president of the Andhra Pradesh State Gold and Diamond Merchants Association, told Deccan Chronicle that those caught with gold jewellery by police without receipts are 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.
Rammohan Rao said gold trade without receipts had been once a booming business. But the same has come down sharply after implementation of GST.
