out to buy Gold or Diamond ornament - be aware of EC Rules !!

To many employed in Private companies, April is a harbinger of happiness as they would receive their Annual performance benefits.  How good was your Appraisal and what is your plan to make your family happy with the handsome bonus ! – but before venture out to a famous Jewellery for buying Gold and Platinum jewellery – be aware of the rules.

Indian General Elections 2024 are around the corner – in Tamil Nadu elections to Parliament are to be held in a single phase on 19^th April to elect 39 members of 18^th Lok Sabha.   Yesterday as I was nearing my office, my vehicle was stopped by Police Cops who with a smile asked me to open the dickey and checked it –  that no money was found in person,  nothing in cash is not the subject matter of this post.

With the Model Code of Conduct (MCC) in force across the country since the announcement of Lok Sabha elections on March 16, law enforcement agencies are on high alert for movement of cash, liquor, jewellery and other freebies that could be used to influence voters.  There have been announcements of seizure of cash as also articles from vehicles, as EC officials along with Police carry out checks on vehicles at important roads.  

Prior to every election, the EC issues detailed instructions to police, Railways, airports, the Income Tax department, and other enforcement agencies, to keep a strict vigil on the movement of cash, liquor, jewellery, drugs and gifts — anything which could be distributed during polls.  EC as per rule has also appointed expenditure observers for every district, alongside static surveillance teams (SST) and flying squads. The flying squads comprise a Senior Executive Magistrate as the head, a senior police officer, a videographer, and three or four armed police personnel.  Surveillance teams put up checkposts on roads, videographing the entire checking process. Their location is changed frequently to maintain an element of surprise.  

The EC’s efforts are meant to keep an eye on campaign expenditure by candidates, which is capped at Rs 95 lakh per constituency in bigger states, and Rs 75 lakh per constituency in smaller ones. However, this adversely affects citizens as well. According to  EC instructions, the CISF or police authorities at airports are supposed to “instantaneously report to the Income Tax Department” anyone carrying cash worth more than Rs.10 lakh, or more than 1 kg in bullion. The Income Tax Department then has to “make necessary verification as per the Income Tax Laws and take necessary measures if no satisfactory explanation is given.” This means that cash or bullion can be seized till verification is completed, in order to ensure that it is not related to any political party or candidate. 

At check-posts controlled by the surveillance teams, the EC makes it clear that “if cash of more than Rs 10 lakh is found in a vehicle, and there is no suspicion of commission of any crime or linkage to any candidate, agent or party functionary, then the SST shall not seize the cash, and [simply] pass on the information to the Income-Tax authority, for necessary action under Income Tax Laws.”

However, if a vehicle carrying a candidate, or his/her agent or party worker is found with over Rs 50,000 in cash or drugs, liquor, arms, or gift items worth over Rs.10,000, then the cash or other items will be seized. If during checking, there is any suspicion of a crime, the seizure will be done under the Criminal Procedure Code (CrPC) and an FIR will be filed within 24 hours.  After seizure, the seized amount shall be deposited in such manner as directed by the Court and a copy of seizure of cash, in excess of Rs 10 lacs shall be forwarded to the Income Tax authority, engaged for the purpose,” the EC says.

All that is fine, yet an innocent person out to make his wife happy with a purchase of a gold chain, carrying a lakh of Rupees in cash could land himself in trouble as also a woman out to buy a diamond chain in cash could invite unwanted trouble.

Issued in public interest – buy any commodity / valuable in a legal manner with proper bill and paying GST.

With regards – S Sampathkumar
3^rd April 2024