(MENAFN- The Peninsula) Â A raid by dozens of tax inspectors on one of India's biggest gold traders this week has tarnished the reputation of an industry worth more than $70bn a year and put at risk its access to funding, a bullion importers' group said.
"The jewellers' fraternity, be it small or big, is feeling disgraced that we've been made to look so negative," Mohit Kamboj, president of the Bombay Bullion Association, said.
Income tax officials this week swooped on about 50 offices of RiddiSiddhi Bullions, a leading gold importer. The raid was part of a probe into financial transactions for suspected bogus imports and exports, said Swatantra Kumar Singh, director general of investigations at the tax department. Prithviraj Kothari, managing director of RiddiSiddhi Bullions, could not be reached for comment.
Other jewellers and dealers were also raided in Mumbai's Zaveri Bazaar. India's appetite for gold is vast, with imports hitting a record 969 tonnes in 2011. The government moved this month to tame demand with a 50 percent hike in import duty to 8 percent.
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