Chennai: Consumers beware, your favourite jeweller might be a cheat. If one goes by the findings of the Bureau of Indian Standards (BIS), gold jewellers are unjustly becoming richer and richer by cheating unsuspecting buyers, palming off poor caratage jewellery by offering much less than its real worth.

According to BIS, many Chennai-based jewellers cheat their customers by at least Rs 500 per every 10 gms of gold jewellery sold. The unjust enrichment even goes up to Rs 825/10 gms in certain cases.

As per the survey conducted by BIS and the Federation of Consumer Organisations of Tamil Nadu and Pondicherry, 73 per cent consumers get just 88 per cent value of the money they pay towards the gold cost; the balance 12 per cent goes into jewellers deep pockets. The survey covered jewellery items purchased from 15 small- and big-retail outlets located in different areas of Chennai. And the items tested are common- and large-turnover items like gold chains, rings, ear tops, bangles and bracelets.

Out of the 15 samples purchased and tested, only four samples were found to be of the claimed purity. Eleven out of 15 samples were of much lesser purity than 22 carat. On an average the purity was less by 11.82 per cent and in one case the purity was less by as much as 19.42 per cent.

This is a trend not confined to Chennai alone. In Jaipur, a BIS survey revealed that consumers of gold get only 91 per cent of the value they pay for in hard cash. At an average Jaipurians are shortchanged at least by 13.9 per cent in gold purity. While cheating is rampant in this trade the extent differs from place to place. In Delhi and Mumbai it is much higher than other cities, says a BIS official.

The magnitude of such cheating will surprise anyone who looks at the annual Indian demand for gold. According to the World Gold Council gold demand in India during 2000 was 533.7 tonnes, and during the first nine months of this year the demand for gold was put at 458.4 tonnes.

Industry sources say around 85 per cent of the total demand is for jewellery, and the balance goes towards medical, industrial and other applications. The four southern states account for 30 per cent of Indias gold jewellery demand.

Concerned by the large-scale duping, BIS, in 2000, decided to introduce quality certification of gold jewellery called hallmarking. Under the scheme, jewellers have to voluntarily register themselves with BIS for selling quality gold to their consumers, upon which they will be provided with BIS Certification, conforming to the specification norms of IS 1417.

Such registered retailers would get their wares tested by BIS-approved assaying centres. And the assaying centres will hallmark those items that conform to the above standards. This mark contains BIS corporate logo, fineness that represents the purity of gold, the assaying centres logo, year of marking and the jewellers logo.

While such hallmarking is compulsory in Europe, in India it is not, says P Rabindranathan, deputy director general, Southern Region, BIS. Unlike consumer durables, in which case samples are tested and the manufacturer is allowed to have the BIS certification logo on all his products, jewellers have to send each and every item they want to be certified to the assaying centre. This is done to ensure quality of the gold sold to the public, says a CEO of an assaying centre.

Rabindranathan says the cost of getting BIS licence is Rs 29,900 plus Rs 30 to Rs 50 per article charged by the assayer. At an average it would cost just Rs 40 per piece and the customer will not mind parting with the sum if he is assured of the quality.

BIS is conducting a nationwide survey and would make public the findings just to educate consumers about availability of hallmarked jewels. We dont have any punitive powers, nor will we initiate any legal action against the cheat jewellers, says a BIS official.