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Ludhiana Jeweler Fined Rs 1 Lakh for Selling 18K Gold as 22K, Faces 8% Interest on Delay

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Ludhiana, Punjab: The District Consumer Disputes Redressal Commission in Ludhiana has ordered Kalyan Jewellers to pay ₹1 lakh in compensation for misrepresenting the purity of gold sold to a customer, with an additional 8% interest to be charged if the amount is not paid within 30 days.

The complaint was filed by Arshdeep Singh, who purchased a pendant and a gold stud for his family in July 2021, both allegedly marketed as 22-carat gold. Suspicion arose as neither item bore a hallmark stamp, prompting the Singh family to have the jewelry tested at LD Gold Lab on August 27, 2021. The lab report revealed the pieces were only 75.21% pure, equivalent to 18-carat gold — significantly lower than the claimed 22 carats.

Efforts to resolve the issue with the jeweler directly, including emails and legal notices, reportedly went unanswered, leading the complainant to approach the Consumer Commission.

During the hearing, Kalyan Jewellers argued that the items were Polki jewelry, traditionally exempt from hallmarking under the Gold Hallmarking Order 2020, and claimed the invoices clearly indicated product details. The Commission, however, rejected this defense, noting that the invoice itself mentioned 22-carat gold, which directly contradicted the actual purity. Additionally, showroom price tags failed to provide critical information about weight, quality, or purity, violating the Consumer Protection Act, 2019.

The Commission, chaired by Sanjeev Batra with Member Monika Bhagat, stated that the jeweler “cannot make a U-turn after mentioning 22-carat purity in the invoice” and recognized that the complainant suffered financial loss and mental harassment due to the misrepresentation.

The panel directed Kalyan Jewellers to pay the ₹1 lakh compensation within 30 days, warning that an 8% annual interest will be applied from the date of filing if payment is delayed.

This case underscores the importance of transparent disclosure of gold purity in sales and highlights the role of consumer rights protections in addressing fraudulent practices.

All news on Encounter News is computer-generated and sourced from third parties. Please read and verify carefully. We will not be responsible for any issues. 

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