Several jewellers here shut their shops on Monday and went on strike against the government's new gold hallmarking rules.
C Vinod Hayagriv, Director and Managing Director of C Krishniah Chetty Group, said under the new rules which came into effect from June 16, the Bureau of Indian Standards (BIS) has recognised only six types of karats: 14kt, 18kt, 20kt, 22kt, 23kt and 24kt.
Any piece of jewellery made out of other karats will no longer be valid, said Hayagriv. "They will be allowed to be purchased by jewellers, but jewellers will not be allowed to re-sell even if a consumer wishes to buy such pre-owned jewellery even at a lower price."
Even the sellers of old or antique jewellery will not get the desired or fair price, said Hayagriv. "We will have to either keep it unsold or melt it and remake it, although certain heritage pieces are worthy heirlooms of the past. Even belonging to large and distinguished families of last centuries."
In this process, the valuation of heritage jewellery will come down by up to 30 per cent. "So the customer loses substantial value for such valuable heritage with provenance history, estate and pre-owned fine pieces of art and old jewellery," said Hayagriv.
He said any legislation on hallmarking must have implicit approval of the BIS as well as the industry.
"If there are any disagreements, they should not be overly imposed but must continue to be voluntary till all stakeholders are completely in agreement and rules are completely clear."
The government has also done away with mentioning the year of manufacture for all hallmarked jewellery which was a mandatory practice so far.
"Now both the consumers and jewellers can falsely claim historic value for their jewellery. This is not good practice," said Hayagriv.
( With inputs from ANI )