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Wastage charged in gold jewellery shops

(Querist) 22 February 2014 This query is : Resolved 
Dear All,

We are aware that jewellery shops bill us making charges for any gold ornaments we buy. This is quite justifiable since the ornaments are made from pure gold and it is fair to pay the labour as making charges.

There is another component called Wastage billed to the customers which normally ranges from 6% to 18%. How there could be wastage to this extent? do the jewellers indirectly accept that the gold smiths are not competent enough to make the ornaments with out wastage.

Where this wastage gold goes? the gold scraps should also be given to the customers in any form (particles, burr) since we pay for the wastage. Is this the real % of waste during recycling?

Kindly take this piece to concern boards, and these merchants should be fixed with ceilings of wastage or no wastage charges.

This is the place where the customers are getting exploited by paying 118% for 100%.
Anirudh (Expert) 22 February 2014
As per Mr. R P Thakur, who retired as Controller of Legal Metrology, Hyderabad, controller, in accordance with government rules, for studded jewelry (both gold and platinum) the wastage claimed by jeweler cannot exceed 9 % of the net weight of the metal and for non-studded designer jewelry, it cannot exceed 3.5%. For coins, biscuits and medallions, the wastage cannot be claimed beyond 1.25%.
Therefore, if any jeweller is charging much more wastage than prescribed, one should lodge a complaint with the Legal Metrology Department.
Dr J C Vashista (Expert) 23 February 2014
It is illegal and file a complaint for charging 6 to 18% for wastage, as correctly advised by the expert Mr. Anirudh, I appreciate his analytical ability and indepth knowlege on the subject .
Sudhir Kumar, Advocate (Expert) 23 February 2014
But bullion industry is not going to change so quickly.
Rajendra K Goyal (Expert) 23 February 2014
Agree with the advise and information of the expert Anirudh ji, but practically the jewelers are charging 8% to 25% as wastage and as advised by expert Sudhir Kumar ji , the Industry is not going to change quickly.
Anirudh (Expert) 23 February 2014
Agreed that nobody will change and that too quickly. It will be good beginning if at least one case, the aggrieved party, lodges a complaint with the Legal Metrological Department with the purchase invoice wherein the wastage % exceeding the prescribed percentage is added by the jeweller. Everything should have a small beginning.
ajay sethi (Expert) 23 February 2014
act as advised by Mr Anirudh
prabhakar singh (Expert) 23 February 2014
Agree with Mr Anirudh!
Rajendra K Goyal (Expert) 23 February 2014
Yes, a good step can be taken as advised by the expert Anirudh ji.
Guest (Expert) 23 February 2014
Simultaneously You Could file a case in Consumer Court
T. Kalaiselvan, Advocate (Expert) 23 February 2014
So the author can be a whistle blower or the person belling the cat if he decides to initiate the action as suggested by expert Mr. Anirudh, all the best for a successful opening.


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