I-T raids lead to vain efforts as RSBL hand over proof of fair bullion deals

RSBL (RiddiSiddhi Bullion) is well known Indian bullion organization, operating within the heart of the gold trading hub, Zaveri Bazaar. The company offers real time OTC physical bullion trading at spot (RSBL SPOT) and if clients do not require delivery, the purchased bullion can be stored securely at no extra cost.

Founded in 1994, RSBL is proud of holding the largest variety of bullions and coins across India. During the year, 2013, Around 100 officers from the income tax (I-T) department raided 56 locations of RiddiSiddhi Bullions Ltd (RSBL), over hawala links and examined documents related to the company's import and export of bullion. I-T also investigated the company's alleged link with betting on the Indian Premier League (IPL).

This sweep was conducted as routine I-T survey, which had no connections with the IPL, hawala links or bogus import-export of precious metals at all. This survey had been done across various companies in Mumbai and not only at RSBL.

Furthermore, RSBL company is extending full co-operation with I-T officials and presented legal proofs of their import-export transactions which were approved and accepted by the Court. RSBL specialises in bars and coins in popular precious metals such as gold, silver and platinum. The company primarily focuses online sales of coins and delivers to customers' doorsteps.

Its bullion sales through e-commerce - RSBL Spot - through over 2,500 locations covering almost all
cities and major towns across the country has been very popular among jewellery manufacturers and
retailers for competitive pricing and prompt delivery. Individual consumers have also opted for online gold coins purchase from RSBL Spot.

MMTC ties up with major banks to retail gold coins

Public sector major MMTC has joined hands with HDFC Bank, ICICI Bank and Andhra Bank to retail gold coins with a new buyback option.

Besides its own outlets across the country, MMTC has tied up with Indian Overseas Bank, Vijaya Bank, Federal Bank and YES Bank to sell gold coins in denominations of 5 gm and 10 gm coin and 20 gm bar.

MMTC has also announced a transparent buyback of gold coins made of recycled gold. It will repurchase the gold coins if they are given back intact in the same tamper-proof packaging with the original invoice at MMTC outlets. Gold coins will be bought back at the prevailing gold price, providing much needed liquidity for customers buying Indian Gold Coins, MMTC said in a statement on Thursday.

With the new partnerships, the network selling the sovereign gold coin will touch 300 outlets during Dhanteras - an auspicious occasion to buy gold - that falls on Friday.

Launched last year, the Indian Gold Coin has the national emblem Ashoka Chakra engraved on one side and Mahatma Gandhi on the other side. Hallmarked by the Bureau of Indian Standards, the 999 fineness coins are of 24 karat purity and are minted by the India Government Mint in Mumbai and Kolkata, said MMTC.

Ved Prakash, Chairman and Managing Director, MMTC, said in the last one year of the launch of the Indian gold coin, seven leading banks in India have started retailing the coins and would partner more banks soon to widen the distribution.

The purchaser of the gold coin would not only contribute towards the country's economic growth but also aid in recycling gold through the transparent buy-back option available at MMTC showrooms, he said.

Prithviraj Kothari, Director, RiddiSiddhi Bullions, said gold and silver prices were likely to remain subdued this calendar year as the dollar strengthens against major global currencies, besides a host of other weak fundamentals acting against precious metals. With some intermittent volatility, he said, gold may touch $1400 an ounce by December-end, translating to Rs. 30,050 per 10 gm in India.

The gold import bill fell to a decade-low of $7.2 billion in the first six months of this year, according to Commerce Ministry data.

Gold demand has been lacklustre so far this year as consumers expect prices to fall further.

"A price level of Rs. 28,500 per 10 gm will provide a good opportunity for buyers," he said.

However, the fall in global gold prices may not reflect in India as the rupee is expected to depreciate proportionately against the dollar, he said.