Kuruvis strike gold in rush to change 2K notes

CS Koteeswaran & Tharian Mathew

CHENNAI: The ‘demonetisation’ of Rs 2,000 note by the Centre has come in handy for kuruvis (gold smugglers) and those dealing with gold ornaments sans bills. The modus operandi is simple: Pay Rs 800 to Rs 1,000 extra per gram of gold and avail the gold in exchange for Rs 2,000 notes, admit informed industrial sources dealing in gold ornaments.

“Making hay while the sun shines is now relevant for those handling gold in the grey market in T Nagar and Sowcarpet. Though the branded showroom and jewellers in T Nagar and other commercial pockets of Chennai are witnessing the same sales, the demand for old gold, mortgaged ones and those brought by kuruvis are in demand,” said 50-year-old Ashok (name changed), a goldsmith based in Sowcarpet who undertakes repair works for branded outlets in T Nagar.

Sources said the practice is prevalent across TN.“Those with Rs 2,000 notes approach goldsmiths to buy 24-carat gold, which is around Rs 6,130 per gram. Goldsmiths, however, state that if they purchase with Rs 2,000 notes they will have to pay Rs 7,000 per gram. Many accept this as they are getting pure gold in return avoiding the long wait at bank counters where one can exchange only 10 notes of Rs 2,000 currency a day,” a source said.

Similarly, if they want to exchange Rs 2,000 for lower denomination notes, here too goldsmiths help them out. For every Rs 2,000 note, they get Rs 1,500 in small denomination notes with the remaining Rs 500 being the commission of the goldsmith, it was said.

When DT Next checked out this information with a goldsmith at Kannamangalam in Tiruvannamalai, the latter accepted and said, “Goldsmiths have to pay commission from the place where they get gold, in addition to GST. Hence they charge for helping an outsider convert his black money into white.” Ashok, meanwhile, has a word of caution about air passengers from Sri Lanka and Gulf countries who bring used and old ornaments by wearing them.