Angadia firms announce vacation till April 23 to avoid I-T raids

Surat: Supply of diamonds and high value goods from the Diamond City to various parts of the country, especially gems and jewellery trading hub in Mumbai, will be affected till April 23 in view of the city-based angadia firms’ refusal to accept parcels from the diamond industry due to fear of action by Election Commission of India under Prevention of Money Laundering Act.
Surat Angadia Association took the decision to suspend supply of high value goods and cash after income tax department recently carried out action against some angadia firms in Surat and Vapi. Cash and high value goods were seized by the department from them as they had failed to furnish necessary documents.

Industry sources said there are about 16 angadia firms in the city, which supply high value goods and cash to various destinations. Ever since the model code of conduct came into effect after announcement of Lok Sabha election, I-T officials and static teams stepped up surveillance in the diamond markets, especially outside the offices of angadia firms. Sources said high value goods and cash supply to the tune of Rs1,500 crore per day will be affected due to closure of angadia firms.

Surat Diamond Association (SDA) president Babu Gujarati said, “Shipment of diamonds has been affected due to closure of angadia firms. Small diamantaires in Saurashtra will be most affected.”

A SDA office-bearer said, “We tried to convince angadia owners, but they refused to change their decision. The reason being that angadia business is based on ‘chitti’ system and that no proper documentation is maintained by the angadia firm owners. Angadias carry high value cash as well between Surat and other centres.”

Surat Angadia Association president Mahendra Patel said, “We cannot take the risk. Goods once seized by the department are not released early. The angadias are afraid because they do not have the required documents to furnish to the officials. This is why we have unanimously decided to shut our business till April 23, the day of polling in Gujarat.”

Babu Patel, owner of Patel Angadia, said, “We are on mini vacation till April 23. It is better to shut the business than allow the officials to seize the high value goods. It is up to the industry now to find a solution.”