Maharashtra: Jewellers face challenges in business as wedding season clashes with poll season

PTI, Nov 15, 2024, 8:12 PM IST

Mumbai: Jewellers are facing challenges in doing hassle-free business during the peak wedding season, which has coincided with the Maharashtra Assembly polls this year, as their goods and bank accounts are being seized by officials despite having relevant papers, an industry body said.

The Model Code Conduct (MCC) is in place in Maharashtra since October 15 in view of the polls on November 20. To enforce the code, the Election Commission (EC) has constituted flying squads and surveillance teams across the state to check movement of unaccounted cash and goods which can be used to induce voters.

“We have received clarity from the EC office regarding movement of goods and we are thankful to them. However, jewellers are still facing challenges like seizing of their accounts despite showing all the necessary documents, which are hindering seamless business during the wedding season,” All India Gem and Jewellery Domestic Council (GJC) chairman Saiyam Mehra told PTI.

He said the goods seized by officials working EC direction will only be returned after the elections are over.

Mehra stated that the gems and jewellery industry, a major job creator, is expecting incentives and tax concessions in Maharashtra, a key market for them, when a new government is formed after announcement of poll results on November 23.

“The gems and jewellery industry in Maharashtra is expecting a significant growth post-elections and we will be making a representation before the government to create more jewellery parks and CFCs (Common Facility Centres). Also, employment generation should be a priority,” he noted.

For large manufacturing units, he maintained, the industry is expecting relief in electricity charges and also increase in limit for the collateral-free business loan to Rs 5 crore from Rs 2 crore now.

“We are urging for relief in electricity charges that are provided for jewellery parks and CFCs to boost the industry, which is one of the top employment generators in the state. We are also urging for increasing the collateral free business loan to Rs 5 crore from the current Rs 2 crore, which is used for building lodging and boarding facilities for skilled labourers,” Mehra added.

The GJC chairman emphasised it is important to promote gem and jewellery business among tourists visiting Maharashtra by reducing the state GST (goods and services tax) to 0.5 per cent from the current 1.5 per cent.

“We will request the new government to give relief in SGST for international tourists returning to their respective countries from Maharashtra. We are also representing the concern of GST on job work, in which we are hopeful we shall get support from the Maharashtra government,” he said.

Overall, the outlook for the gems and jewellery industry in Maharashtra post-election is promising, with a focus on domestic growth and government support, Mehra noted.

GJC vice-chairman Rajesh Rokde, echoing similar views, said the industry needs a separate nodal officer to address the issues it faces.

Currently, he said, in case of any issues faced by the industry, “We have to go to multiple departments, home, finance, among others, for resolution, which leads to wastage of time and causes adverse impact on business”.

“One of the major issues the industry is facing today (during polls) is that despite having all required documents, goods (precious metals) are seized during movement. The industry does most of its business during festivals and wedding season and this (seizure) creates hurdles in movement of goods (during polls) and hampers business,” Rokde maintained.

“We are expecting the new government will support the industry and provide incentives to establish ‘gold souks’ and ‘gold clusters’ in major cities in the state as it is doing in Mumbai,” he added.

Talking about local issues, India Bullion and Jewellers Association (IBJA) national spokesperson Kumar Jain said the government must improve infrastructure in Zaveri Bazaar, a major hub for jewellery industry in south Mumbai, saying the area has become very congested and people find it difficult to visit it.

The law and order situation in the area (Zaveri Bazaar) is poor and “the state government needs to be stringent as we are handling very expensive goods”, he said.

Gem and Jewellery Export Promotion Council chairman Vipul Shah said the Maharashtra government has always been very supportive of the industry.

“We have always been supported by the Maharashtra government, especially while setting up the Jewellery Park (in Mumbai). We hope to receive the same level of support from the new government,” he added.