The Gold Control Act, 1968

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1 THE GOLD (CONTROL) ACT, 1968 [45 OF 1968] (Amended till 1981) www.referencer.in 2 CONTENTS CHAPTER I Preliminary 1. Short title and extent 2. Definitions 3. Act not to apply to gold belonging to Government or the Reserve Bank CHAPTER II Administrator and Gold Control Officers 4. Appointment and functions of Administrator and Gold Control Officers 5. Power of Administrator to issue directions and orders 6. Power of Administrator to call for returns as to receipt or sale of hypothecated gold 7. Administrator, etc., to be public servants CHAPTER III Restrictions Relating to the Manufacture, Acquisition, Possession, Sale, Transfer or Delivery of Gold 8. Restrictions regarding acquisition, possession and disposal of gold 9. Restrictions on the disposal of gold acquired under any authorisation made by the Administrator 10. Loans not to be obtained on hypothecation of primary gold or undeclared gold www.referencer.in 11. Prohibition regarding making, manufacturing, etc.; of primary gold, articles, ornaments, etc. 3 CHAPTER IV Possession of Gold by Public Religious Institutions 12. Bar on possession of primary gold when not to apply to primary gold which forms a part of structure, etc., of public religious institutions 13. Disposal of gold received as offerings 14. Submission of monthly accounts 15. Responsibility of the person in charge of public religious institution CHAPTER V Declarations 16. Declarations as to articles or ornaments CHAPTER VI Refiners 17. Licensing of refiners 18. Refiner to make standard gold bars only 19. Standard gold bar to be stamped 20. Acquisition of gold by a refiner 21. Sale or delivery of gold by a refiner www.referencer.in 4 22. Licensed refiner to comply with conditions, etc. 23. Prohibition regarding possession of gold not included in any return 24. Licensed refiner not to keep in a refinery any gold which is not a part of his stock-in-rate 25. Gold where to be refined when silver, etc., is also refined in the same premises 26. Silver refiner to keep record of gold recovered from such refining CHAPTER VII Dealers 27. Licensing of dealers 28. Money-lending business not to be carried on in licensed premises 29. What a dealer may manufacture 30. Ornament, etc., to be stamped 31. Acquisition of gold by a dealer 32. Possession of primary gold by a licensed dealer 33. Gold which is not a part of the stock-in-trade, not to be kept in the business premises of a dealer 34. Sale or delivery of gold by a licensed dealer or certified goldsmith 35. Section 34 not to apply to the transfer of gold to a certified goldsmith or to an artisan www.referencer.in 5 36. Acquisition, sale, etc., of gold to be subject to conditions 37. Licensed dealers may take assistance of specialists 38. Prohibition regarding possession of gold not included in any return CHAPTER VIII Certified Goldsmiths 39. Certified goldsmiths 40. What a certified goldsmith may manufacture 41. Restrictions on acquisition or sale of gold by a certified goldsmith 42. Limit on primary gold which a certified goldsmith may possess 43. Section 37 to apply to certified goldsmith CHAPTER IX Artisans 44. Artisans 45. Functions of an artisan 46. Limits on primary gold which an artisan may have in his possession 47. Restrictions on the acquisition, possession or disposal of gold by an artisan 48. Artisan not to work at any place other than the premises of the dealer www.referencer.in 49. Artisans to carry identity cards with them 6 CHAPTER X Cancellation and Suspension of Licences and Certificates 50. Cancellation or suspension of licence or certificate 51. Cancellation of licence on certificate or application by dealer, refiner or certified goldsmith 52. Licence to a firm to be invalid if there is any change in the partnership of a firm 53. of gold in the possession of licensed dealers, refiners and certified goldsmith in certain cases 54. Display of licences CHAPTER XI Accounts and Returns 55. Accounts 56. Returns as to gold 57. Production and inspection of accounts CHAPTER XII Entry, Search, Seizure and Arrest 58. Power to enter and search 59. Power to search person 60. Condition under which a search shall be conducted www.referencer.in 7 61. Power to search vehicle, etc. 62. Power to search to include power to break open locks, etc. 63. Power to summon persons to give evidence and produce documents 64. Power to call for information, etc. 65. Power to impound or retain documents 66. Power to seize 67. Presumption as to documents in certain cases 68. Power to arrest 69. Provisions of Sections 102 and 103 of the Code of Criminal Procedure to apply to search and seizure 70. Power to record statements CHAPTER XIII Confiscation and Penalties 71. Confiscation of gold 72. Confiscation of conveyances 73. Power to give option to pay fine in lieu of confiscation 74. Liability to penalty 75. Penalties for contravention, etc., not expressly mentioned 76. Reference to gold to be construed as reference to gold of any purity 77. Confiscation or penalty not to interfere with other punishments www.referencer.in 8 CHAPTER XIV Adjudication, Appeal and Revision 78. Adjudication 79. Giving of an opportunity to the owner of gold, etc. 80. Appeal 81. Power of revision of the administrator 82. Power of revision of the Central Government 83. Power of the adjudicating officer 84. Finality of orders CHAPTER XV Offenses and their Trial 85. Punishment for illegal possession, etc., of gold 86. Failure to make a declaration 87. Failure to submit returns or to maintain accounts 88. Dealers, etc., when to be deemed to have abetted an offence 89. Punishment for the use of counterfeit stamp, etc. 90. Punishment for allowing premises to be used as refinery 91. Punishment for offences for which no punishment is provided 92. Power of Court to order forfeiture 93. Offences by companies 94. Wrongful search, seizure, etc. by Gold Control Officer www.referencer.in 95. Failure of Gold Control Officer in duty or his connivance at the 9 contravention of the provisions of this Act 96. Punishment for giving false information 96-A Certain offences to be non-cognizable 97. Cognizance of offences 98. Offences to be tried summarily 98-A Power of court to publish name, place of business, etc., of persons convicted under the Act 98-B Presumption of culpable mental state 98-C Relevancy of statements under certain circumstances 98-D Application, of Section 562 of the Code of Criminal Procedure, 1908, and of the Probation of Offenders Act, 1958 CHAPTER XVI Miscellaneous 99. Presumption as to ownership of gold 100. Precautions to be taken by licensed dealer, refiner or certified goldsmith before acquiring any gold 101. Power to take samples 102. Power to delegate 103. Transfer or transmission of business 104. Prohibition of use of buildings for carrying on unlicensed refinery 105. Officers required to assist Gold Control Officer www.referencer.in 10 106. Recovery of sums due to Government 107. Secrecy and fidelity 108. Protection of action taken in good faith 109. Power to exempt 110. Procedure in respect of gold seized by police officers 111. Effect of Act and rules, etc., inconsistent with other enactments 112. Presumption as to orders 113. Service of order, decision, etc. 114. Power to make rules 115. Power of Central Government and Administrator to empower or authorise by general or special order 116. Repeal and savings 117. Power to remove difficulties ********** www.referencer.in 11 THE GOLD (CONTROL) ACT, 1968 [45 OF 1968] [1st September, 1968] An Act to provide, in the economic and financial interests of the community, for the control of the production, manufacture, supply, distribution, use and possession of, and business in gold, ornaments and articles of gold and for matters connected therewith or incidental thereto. Be it enacted by Parliament in the Nineteenth Year of the Republic of India as follows:- CHAPTER I PRELIMINARY 1. Short title and extent.- (1) This Act may be called the Gold Control) Act, 1968. (2) It extends to the whole of India. 2. Definitions.-In this Act, unless the context otherwise requires,- (a) "Administrator" means the Administrator appointed under Section 4; (b) "article" means anything (other than ornament), in a finished form, made of, manufactured from or containing, gold, arid includes (i) any gold coin, (ii) broken pieces of an article, but does not include primary gold; www.referencer.in 12 (c) "artisan" means a person (other than a certified goldsmith) who is employed by a licensed dealer, whether on cash or deferred payment or on commission, remuneration or other valuable consideration, to make, manufacture, prepare, repair, polish or process any article or ornament or to melt, process or convert gold, for the purpose of making, manufacturing, preparing or processing, any article or ornament; (d) "certified goldsmith" means a self-employed goldsmith who holds a valid certificate, referred to in Section 39; (e) "coin” means a thing which is stamped and issued by or on behalf of Government or by any other authority in exercise of its sovereign power in order to be used for the time being as money, whether such coin is a current coin or not; (f) "commencement of Part XIIA of the Defence of India Rules, 1962" means the day on which that Part was initially inserted into the Defence of India Rules, 1962, that is to say, the tenth day of January, 1963; (g) "company" means a company as defined in section 3 of the Companies Act, 1956, (1 of 1956), and includes a foreign company as defined in section 591 of the said Act; (h) "dealer" means any person who carries on, directly or otherwise, the business of making, manufacturing, preparing, repairing, polishing, buying, selling, supplying, distributing, melting, processing or converting, gold, whether for cash or for deferred payment or for commission, remuneration or other valuable consideration, and includes- (i) a Hindu undivided family which carries on such business; www.referencer.in 13 (ii) a local authority, company, society registered under the Societies Registration 1860 Act, (21 of 1860), co-operative society incorporated under any law with respect to co-operative societies, club, firm or other association of persons which carries on such business, or- (a) buys or accepts gold (for the purpose of making orna- ments) from, (b) makes, manufactures, prepares, repairs or polishes ornaments for, (c) processes, melts or converts gold (for the purpose of making ornaments) for, (d) sells, supplies or distributes ornaments or other gold (for the purpose of making ornaments) to, its members; (iii) a commission agent broker, del credere agent, auctioneer or other mercantile agent, by whatever name called, who carries on such business on behalf of any principal, but does not include the Reserve Bank of India, the State Bank of India, any subsidiary bank as defined in clause (k) of section 2 of the State Bank of India (Subsidiary Banks) Act, 1959, (38 of 1959) or any banking company defined in clause (c) of section 5 of the Banking Regulation Act, 1949 (10 of 1949), in so far as such bank sells or transfers or exhibits for sale or transfer any gold. Explanation.- For the purposes of this Act- (a) every person who acts as an agent of a dealer residing outside India and carries on the business of such dealer in India or acts on behalf of such dealer as- www.referencer.in 14 (i) a mercantile agent as defined in the Sale of Goods Act, 1,930 (3 of 1930) or, (ii) an agent for handling gold or documents of title relating to gold, or (iii) an agent for the collection or payment of sale price of gold or as a guarantor for such collection or payment; and (b) every branch in India of a firm of company having its registered office outside India, if such firm or company is a dealer, shall be deemed to be a dealer; (i) "declaration” means a declaration which is required by this Act or was required by rule 126-1 of the Defence of India Rules, 1962, or the Gold (Control) Ordinance, 1968 (6 of 1968), to be made with regard to the ownership, possession, custody or control of gold; (j) "gold” means gold, including its alloy (whether virgin, melted or re-melted, wrought or unwrought), in any shape or form, of a purity of not less than nine carats and includes primary gold, article and ornament; (k) "gold coin” means a coin made of gold of any purity, whether such purity exceeds nine carats or not; (l) "Gold Control Officer” means a Gold Control Officer appointed under section 4; (m) "licensed dealer” means a dealer who holds a valid licence granted under section 27 authorising him to carryon business as a dealer; (n) "licensed refiner” means refiner who holds a valid licence granted under section 17 authorising him to carryon business as a refiner; www.referencer.in 15 (o) "notification” means a notification published in the Official Gazette; (p) "ornament” means a thing, in a finished form, meant for personal adornment or for the adornment of any idol, deity or any other object of religious worship, made of, or manufactured from, gold, whether or not set with stones or gems (real or artificial), or with pearls (real, cultured or imitation) or with all or any of them, and includes parts, pendants or broken pieces of ornament. Explanation.- For the purposes of this Act, nothing made of gold, which resembles an ornament, shall be deemed to be an ornament unless the thing (having regard to its purity, size, weight, description or workmanship) is such as is commonly used as ornament in any State or Union territory; (q) "prescribed” means prescribed by rules made under this Act ; (r) "primary gold” means gold in any unfinished or semifinished form and includes ingots, bars, blocks, slabs, bilets, shots, pellets, rods, sheets, foils and wires; (s) "refiner" means a person who, being the owner, lessee or occupier of a refinery, is engaged in the business of melting, assaying, refining alloying or extracting gold from any ore, salt or chemicals or subjecting it to any other process; (t) "refinery" means a place where gold is melted, assayed, refined, alloyed or extracted from any ore, salt or chemicals or subjected to any other process for the purpose of making primary gold and includes a place where gold is assayed at the request of any dealer or other person, whether for the purpose of making primary gold or not, but does not include a place where gold is melted, alloyed or subjected to any other process by a licensed dealer or his artisan or a certified goldsmith for the purpose of making, manufacturing, preparing, repairing, polishing or processing any article or ornament; www.referencer.in 16 (u) "standard gold bar" means primary gold of such fineness, dimensions, weight and description and containing such particulars as may be prescribed; (v) "value", in relation to primary gold, article or ornament, means,- (i) when the gold is seized under this Act, the market price of such gold as on the date of the seizure thereof, (ii) when the gold is not available for seizure, the market price of such gold as on the date on which the notice referred to in section 79 is issued. Explanation.- "market price",- (i) in relation to gold seized, means the price at which such gold is ordinarily sold or offered for sale at, or near to, the place of seizure; and (ii) in relation to any other gold, means the price at which such gold is ordinarily sold or offered for sale at, or near to, the place where the offence in relation to that gold is detected. 3. Act not to apply to gold belonging to Government or the Reserve Bank.- Nothing in this Act shall apply to, or in relation to,- (a) any gold belonging to, or in the possession, custody or control of, Government or the Reserve Bank of India, (b) any melting, assaying, refining alloying or extracting of gold done by Government in any refinery owned or occupied by it, for the purpose of making or manufacturing primary gold for its own use or for the use of the Reserve Bank of India. ---------------------------------------------------------------------------------- NOTES www.referencer.in 17 So long as no definite tests have been prescribed under law it is only a question of proof whether an article alleged to be gold is really gold and whether it is primary gold. It has to be borne in mind that the opinion of an expert on a point that he is skilled is relevant under Section 45 of the Evidence Act. M. G. Venugopalan vs. Edayil Veettil Govindan, 1976 Cr LJ 165. CHAPTER II ADMINISTRATOR AND GOLD CONTROL OFFWERS 4. Appointment and functions of Administrator and Gold Control Officers.- (1) The Central Government shall, by notification, appoint an Administrator for carrying out the purposes of this Act. (2) The Central Government may, by notification, appoint as many persons as it thinks fit to be Gold Control Officers for the purpose of enforcing the provisions of this Act. (3) The Administrator shall discharge his functions subject to the general control and directions of the Central Government. (4) The Administrator may authorise such person as he thinks fit to also exercise all or any of the powers exercisable by him under this Act other than the powers under sub-section (6) of this section or under clause (a) of sub-section (l) of section 80 or under section 81, and different persons may be authorised to exercise different powers. (5) Subject to any general or special direction given or condition imposed by the Administrator, any person authorised by the Administrator to exercise any powers may exercise those powers in the same manner and with the same effect as if they had been conferred on that person directly by this Act and not by way of authorisation. www.referencer.in 18 (6) The Administrator may also- (a) perform all or any of the functions of, and (b) exercise all or any of the powers conferred by this Act or any rule or order made thereunder on, any officer lower in rank than himself. (7) A Gold Control Officer shall, subject to such limitations, restrictions and conditions as the Central Government may think fit to impose, exercise such powers and discharge such functions as are specified or conferred, as the case may be, by or under this Act. 5. Power of Administrator to issue directions and orders.- (1) The Administrator may, if he thinks fit, make orders, not inconsistent with the provisions of this Act, for carrying out the provisions of this Act. (2) The Administrator may, so far as it appears to him to be necessary or expedient for carrying out the provisions of this Act, by order- (a) regulate, after consultation with the Reserve Bank of India, the price at which any gold may be bought or sold, 1[* * *] 6. Power of Administrator to call for returns as to receipt or sale of hypothecated gold.- (1) The Administrator may, if he is of opinion that it is necessary in the public interest so to do, require any person who lends or advances money on the hypothecation, pledge, mortgage or charge of any article or ornament to make to him, in such form and within such time as may be specified, a return as to the receipt, delivery or sale of such article or ornament and as to the persons from whom they were received or, as the case may be, to whom they were delivered or sold. (2) The Administrator may, by order, authorise any Gold Control Officer to examine the accounts relating to the receipt, delivery or sale of any gold, of any person who advances any money on the hypothecation, pledge, mortgage or charge of any article or ornament, and if any gold is found in www.referencer.in 19 the possession of such person which is not entered in such accounts, or which is in excess of the quantity shown in such accounts, and which is not otherwise accounted for to the satisfaction of such officer, such gold shall be deemed to be in the possession of such person in contravention of the provisions of this Act. 7. Administrator, etc., to be public servants.- The Administrator, a Gold Control Officer, and any person authorised by the Administrator or the Central Government and performing any functions under this Act, shall be deemed to be public servants within the meaning of section 21 of the Indian Penal Code, (45 of 1860). ---------------------------------------------------------------------------------- 1The word "and" cl. (b) omitted by Act 26 of 1969, s. 2 (w.e.f. 03-07-1969). CHAPTER III RESTRICTIONS RELATING TO THE MANUFACTURE, ACQUISITION, POSSESSION, SALE, TRANSFER OR DELIVERY OF GOLD 8. Restrictions regarding acquisition, possession and disposal of gold.- (1) Save as otherwise provided in this Act, no person shall- (i) own or have in his possession, custody or control, or (ii) acquire or agree to acquire the ownership, possession, custody or control of, or (iii) buy, accept or otherwise receive or agree to buy, accept or otherwise receive, any primary gold. 2[(2) Save as otherwise provided in this Act, a person may,- www.referencer.in 20 (a) (i) acquire or agree to acquire the ownership, possession, custody or control of, or (ii) buy accept or otherwise receive or agree to bay, accept or otherwise receive, any ornament, unless he knows or has reason to believe that such ornament, being required to be included in a declaration, has not been so included; (b) sell, deliver, transfer or otherwise dispose of, or agree to sell, deliver, transfer or otherwise dispose of, any ornament, but shall not do so if the ornament, being required to be included in a declaration, has not been so included.] (3) Save as otherwise provided in this Act, no person shall- (a) acquire, or agree to acquire, the ownership, possession, custody or control of, or (b) buy, accept or otherwise receive, or agree to buy accept or otherwise receive, any article, except by succession, intestate or testamentary. (4) Save as otherwise provided in this Act, no person shall sell, deliver, transfer or otherwise dispose of, or agree to sell, deliver, transfer or otherwise dispose of, any article to a person who is not a licensed dealer or refiner: Provided that a person may deliver an article to a certified goldsmith for the purpose of repairing or polishing or for the purpose of getting one or more ornaments made, manufactured or prepared therefrom: Provided further that no such sale, delivery, transfer or disposal of any article shall be made- www.referencer.in 21 (i) where such article is required to be included in a declaration unless such article has been included in a declaration which has been duly made by the person who intends to sell, deliver, transfer or otherwise dispose of the same, or (ii) where such article is not required to be included in a declaration, unless the sale, delivery, transfer or disposal thereof has been authorised by the Administrator. (6) Notwithstanding anything contained in sub-sections (3) and (4), a person may accept or transfer, by way of gift or exchange, gold coins, not exceeding five in number, if, together with the gold coins received by way of gift or exchange, the total holding of gold coins of the donee or transferee, as the case may be, does not exceed fifty grammes. (6) Notwithstanding anything contained in this section, the Administrator may, if he is of opinion that the special circumstances of any case or class of cases so require, authorise any person or class of persons to buy or otherwise acquire, accept, or otherwise receive, or sell, deliver, transfer or otherwise dispose of, any primary gold or article. 9. Restrictions on the disposal of gold acquired under any authorisation made by the Administrator.- (1) Every person who acquires gold under any authorisation made by the Administrator shall observe such conditions and be subject to such restrictions as may be specified therein and shall furnish to the Administrator on account of such gold, if so required by the Administrator. (2) No person receiving, accepting, buying or otherwise acquiring gold in accordance with any authorisation made by the Administrator shall- (i) sell, deliver, transfer or otherwise dispose of, or agree to sell, deliver, transfer, or otherwise dispose of, or (ii) expose or offer for sale, delivery, transfer, or disposal of, such gold, www.referencer.in 22 except in accordance with such authorisation. 10. Loans not to be obtained on hypothecation of primary gold or undeclared gold.- No person shall obtain from any other person any loan or advance on the hypothecation, pledge, mortgage or charge of- (a) any primary gold, or (b) any article or ornament which is required to be included in a declaration unless such article or ornament has been so included: Provided that, in the case of an article which is not required to be included in a declaration, no transfer or delivery thereof shall be made unless such transfer or delivery has been intimated in writing to the Administrator. 11. Prohibition regarding making, manufacturing, etc., of primary gold, articles, ornaments, etc.- (1) Save as otherwise provided in this Act, no person shall- (a) make, manufacture, prepare or process, any primary gold, or (b) make, manufacture, prepare, repair, polish or process, any ornament, or (c) make, manufacture, prepare, repair, polish or process, any article, or (d) make, manufacture or prepare anything containing gold of any purity, whether such purity exceeds nine carats or not or (e) melt, assay, refine, alloy or extract gold of any purity, whether such purity exceeds nine carats or not, or subject such gold to any other process, unless he is authorised so to do by the Administrator. Explanation.- Nothing contained in this sub-section shall apply to the polishing by any person, in his dwelling house, of any article, or ornament, or both, belonging to himself or to any other member of his family. www.referencer.in 23 (2) Every authorisation made under sub-section (1) shall be subject to such conditions (including conditions as to the payment of any fee or charges of supervision) and restrictions as may be specified therein. ---------------------------------------------------------------------------------- 2Subs. by Act, 26 of 1969, s. 3, for sub-section (2) (retrospectively). CHAPTER IV POSSESSION OF GOLD BY PUBLIC RELIGIOUS INSTITUTIONS 12. Ban on possession of primary gold when not to apply to primary gold which forms a part of structure, etc. of public religious institutions.- Nothing in clause (i) of sub-section (I) of section 8 shall apply to any primary gold which forms part of any structure or any other construction or appendage within the precincts of a temple, church, mosque, gurdwara or any other place of public religious worship if such primary gold has been included in a declaration. 13. Disposal of gold received as offerings.- Notwithstanding anything contained in this Act, a public religious institution may receive gold as offerings: Provided that- (a) where any article is received by such institution, as an offering, such article may be- (i) kept by such institution for its use, or (ii) sold to a licensed dealer or refiner, or (iii) converted into ornaments for the deity or idol, or (iv) converted, with the previous permission of the Administrator into any new article which may be required for worship in the institution or for use in, www.referencer.in 24 or decoration of, the structure or other construction or appendage within the precincts of the institution; (b) where any primary gold is received by such institution, as an offering, the institution shall dispose of such primary gold by- (i) converting the same, with the previous permission of the Administrator, into ornaments for the deity or idol, or into new articles which may be required for worship in the institution or for use in, or decoration of, the structure or other construction or appendage within the precincts of the institution, or (ii) selling the same to such licensed dealer or refiner as may be specified, and under such conditions, limitations and restrictions as may be imposed, by the Administrator: 14. Submission of monthly accounts.- Without prejudice to the provisions of Chapter V, every public religious institution shall submit, in such form and in such manner as may be prescribed, to the Administrator monthly accounts of gold received by it as offerings and disposed of by it. 15. Responsibility of the person in charge of public religious institution.- The person in charge of the management of any public religious institution shall be responsible for anything done or omitted to be done by such institution in relation to any gold. CHAPTER V DECLARATIONS 16. Declarations as to articles or ornaments.- (1) Save as otherwise provided in this Chapter, every person who owns, or is in possession, custody or control of, any article or ornament at the commencement of this Act, or acquires the ownership, possession, custody or control of any article or ornament thereafter, shall make, within thirty days from such www.referencer.in 25 commencement or from such acquisition, as the case may be, or within such further period as the Administrator may, on sufficient cause being shown, allow, a declaration in the prescribed form as to the quantity, description and other prescribed particulars of any article, or ornament, or both, owned, possessed, held or controlled by him: Provided that no such declaration shall be required to be made where a person who, having owned, possessed, held or controlled any article or ornament before the commencement of this Act, has already made a declaration in relation to that article, or ornament, or both: Provided further that nothing in this sub-section shall be construed as enabling any declaration to be made in respect of any gold for which the period prescribed or allowed under the law for the time being in force before the commencement of this Act had expired before such commencement. (2) For the removal of doubts, it is hereby declared that the declaration referred to in this section shall be made, in relation to any article, or ornament, or both,- (a) owned by a minor or a lunatic, by the guardian or manager of such minor or lunatic, as the case may be ; (b) owned by an idol or a deity, by the manager of such idol or deity, whether known as shebait or manager or by any other name; (c) owned, possessed, held or controlled by a person whose properties are under the management of any administrator or receiver, by such administrator or receiver; (d) owned, possessed, held or controlled by a person whose properties are under the management of a Court of Wards, by the manager of such Court; (e) vested in an executor or an administrator of a will or other testamentary disposition, by such executor or administrator; www.referencer.in 26 (f) owned, possessed, held or controlled by the members of a firm, by any partner of such firm; (g) owned, possessed, held or controlled by a Hindu undivided family, by the head or Karta of such family; (h) which is the subject-matter of any public or private trust, by the trustee of such trust; (i) owned, possessed, held or controlled by a company, whether incorporated in or outside India, by any person in charge of the manage- ment of the affairs of such company; (j) belonging to a temple, church, mosque, gurdwara or any other religious institution, by the person in charge of the management of such temple, church, mosque, gurdwara or other religious institution; (k) which is wakf property, by the mutawalli of such wakf; (l) owned, possessed, held or controlled by any society, club or other association, by the secretary or manager of such society, club or other association; (m) owned, possessed, held or controlled by any other person, by such person as may be prescribed. (3) If any person who did not own, possess, hold or control, before the commencement of this Act, any quantity of gold in excess of the quantities specified in sub-section (5), acquires, after such commencement, the ownership whether by succession, intestate or testamentary, or otherwise), possession, custody or control of any gold and if, as a result of such acquisition, the total quantity of gold owned, possessed, held or controlled by such person exceeds the quantities specified in sub-section (5), such person shall, within thirty days from the date of such acquisition or within such further period as the Administrator may, on sufficient cause being www.referencer.in 27 shown, allow, make a declaration in the prescribed form stating the total quantity, description and other prescribed particulars of,- (a) the gold owned, possessed, held or controlled by him immediately after such acquisition, and (b) the person from whom the ownership, possession, custody or control of such gold was acquired. (4) If any person who has made a declaration, whether under subsection (1) or under sub-section (3) or under Part XIIA of the Defence of India Rules, 1962, or under the Gold (Control) Ordinance, 1968 (6 of 1968), as to gold owned, possessed, held or controlled by him, acquires (whether by succession, intestate or testamentary or otherwise), or parts with, after such declaration, the ownership, possession, custody or control of any quantity of gold, he shall, as often as he acquires or parts with the ownership, possession, custody or control of any quantity of gold, make, within thirty days from the date of such acquisition or parting with, or within such further period as the Administrator may, on sufficient cause being shown, allow, a further declaration in the prescribed form stating the quantity, description and other prescribed particulars of the gold in relation to which such ownership, possession, custody or control has been acquired or parted with by him and giving the prescribed particulars of the person from whom the ownership, possession, custody or control of such gold was acquired or in whose favour the ownership, possession, custody or control of such gold was parted with, as the case may be. (5) No declaration referred to in sub-section (1) or sub-section (3) shall be required to be made,- (a) in relation to articles, unless the total weight of articles owned, possessed, held or controlled by,- (i) a minor, who is not a member of a family, exceeds twenty grammes, www.referencer.in 28 (ii) an individual (other thania minor), who is not a member of a family, exceeds fifty grammes, (iii) a family, exceeds fifty grammes, (iv) any person referred to in clauses (b) to (1) and (h) to (m) of sub-section (2), exceeds fifty grammes; (b) in relation to any ornaments, or both articles and ornaments, where both articles and ornaments are owned, possessed, held or controlled, unless the total weight of such ornaments or both articles and ornaments, as the case may be, owned, possessed, held or controlled by,- (i) an individual who is not a member of a family, exceeds two thousand grammes, (ii) a family, exceeds four thousand grammes; (c) in relation to any ornaments, or both articles and ornaments, owned, possessed, held or controlled by any person referred to in clauses (b) to (f) and (h) to (m) of sub-section (2) unless the total weight of such ornaments, or both articles and ornaments, exceeds two thousand grammes. (6) For the purposes of this section, "family" shall be deemed to consist of- (i) the husband, wife and one or more minor children, or (ii) any two or more of them, but shall not be deemed to include any other person. (7) Every licensed dealer or refiner shall make a declaration or further declaration, as the case may be, in accordance with the provisions of this section in relation to any gold owned, possessed, held or controlled by him in any capacity other than the capacity of a licensed dealer or refiner and the provisions of sub-section (5) shall not apply to such gold. Explanation.- Where the licensed dealer or refiner is a company or other body corporate or a firm, the declaration referred to in this subsection shall www.referencer.in 29 also be made by every director of such company or body corporate or as the case may be, every partner of such firm, in respect of the gold owned, possessed, held or controlled by him in any capacity. (8) Every declaration made under this section shall be made in triplicate, of which one copy shall be authenticated and signed by the Gold Control Officer and thereafter shall be returned -to the person making the declaration and the copy so returned shall be retained by such person as evidence of the declaration made by him under this section. (9) Every declaration made under this section shall be kept by the Gold Control Officer in safe custody and the particulars thereof shall be entered in a register to be maintained for this purpose. (10) A person who has made a declaration shall, as often as he acquires or parts with, after such declaration the ownership, possession, custody or control of any quantity of gold, endorse within thirty days from the date of such acquisition, or parting with, of gold, in such manner as may be prescribed, on the copy of the declaration retained by him, and shall also produce such copy, within seven days from the date of such endorsement, before the Gold Control Officer, who shall make necessary changes in the register referred to in sub-section (9) and also in the copy of the declaration kept in his safe custody. (11) No person shall own or have in his possession, custody or control any quantity of gold which is required to be included in a declaration unless such gold has been included in a declaration or further declaration, as the case may be : Provided that nothing in this sub-section shall apply until the expiry of the period within which a person is entitled to make a declaration or further declaration. (12) A person upon whom a penalty has been imposed or whose gold has been confiscated under the provisions of Chapter XIII for failure to make a www.referencer.in 30 declaration shall, if so directed by the authority adjudging the penalty or confiscation, make a declaration within such time as may be specified in the direction. (13) Where the period prescribed or allowed under the law in force immediately before the commencement of this Act, for any declaration to be made in respect of any gold, had not expired before such commencement, the declaration may be made within the period prescribed or allowed under such law. ---------------------------------------------------------------------------------- NOTES In the instant case the gold was found in an unlocked drawer of a cupboard in the house which was inhabited not only by the accused but also by other members of the joint family. The prosecution has not established that the accused had knowledge that the said contraband gold was in the house. The prosecution has not proved that the accused was in conscious possession of the contraband gold found in the house where he was living. Therefore, the presumption that he is the owner thereof does not arise in the case. The question of making a declaration under Section 16(2)(g) would raise only by a person who owns, or who has possession or control of gold. Asstt, Collector of Central Excise and Customs vs. Rikabdas Tejmal Shah, 1973 Cr LJ 71, 74: AIR 1972 Mys 329. CHAPTER VI REFINERS 17. Licensing of refiners.- (1) Save as otherwise provided in this Act, no person shall either establish a refinery or carryon business as a refiner unless he holds a valid licence issued in this behalf by the Administrator. (2) A licence issued under this section,- www.referencer.in 31 (a) shall be in such form as may be prescribed, (b) shall be valid for such period as may be specified therein, (c) may be renewed, from time to time, and 3[(d) shall be subject to such conditions and restrictions as may be prescribed.] (3) Every licence issued under Part XIIA of the Defence of India Rules, 1962, or under the Gold (Control) Ordinance, 1968, (6 of 1968) authorising the establishment of a refinery or carrying on of business as a refiner, shall, if in force immediately before the commencement of this Act, continue to be in force until the expiry of the period of its validity or until the cancellation thereof, whichever is earlier. (4) A person who holds, at the commencement of this Act, a valid licence authorising him to establish a refinery or to carry on business as a refiner shall, if he intends to continue such business after the expiry of the period of its validity, make, at least one month before the expiry of such period, an application (in such form and on payment of such fees, not exceeding one hundred rupees, as may be prescribed) for the renewal of such licence. (5) A person who intends to establish or commence, after the commence- ment of this Act, a refinery or business as a refiner, shall make an application (in such form and on payment of such fees, not exceeding one hundred rupees, as may be prescribed) for the issue of a licence. 4[(6) (a) No application for the issue of a licence to commence or carry on business as a refiner shall be granted unless the Administrator, after making such inquiry as he may think fit, is satisfied with regard to the following matters, namely :- (i) the security of the premises where the applicant intends to carry on business as a refiner the suitability of such premises for being used as a www.referencer.in 32 refinery, and the existence therein of arrangements for the storage of gold before and after refining; (ii) the existence, in such premises, of equipment for the manufacture of standard gold bars, or for assaying of gold, and the quality and adequacy of such equipment; (iii) the existence, in such premises, of facilities for the exercise of supervision and control by the Administrator or any other person authorised by him in this behal; (iv) the competence of the applicant to manufacture standard gold bars; and (v) such other matters as may be prescribed. (b) No application for the renewal of a licence to carry on business as a refiner shall be rejected unless- (1) the holder of such licence has been given a reasonable opportunity of presenting his case, and (2) the Administrator is satisfied that- (i) the application for such renewal has been made after the expiry of the period specified therefor, or (ii) the refinery does not continue to satisfy the matters specified in sub-clause (i), (ii), (iii) or (v) of clause (a), or (iii) any statement made by the applicant at the time of the issue or renewal of the licence was incorrect or false in material particulars, or (iv) the applicant has contravened any term or condition of the licence or any provision of this Act, or any rule or order made thereunder or of any other law for the time being in force in so far as such law prohibits or restricts the bringing into or taking out of India of any goods (including www.referencer.in 33 coins, currency, whether Indian or foreign exchange) or the dealing in such goods by way of acquisition or otherwise. (c) Notwithstanding anything contained in clause (a) or clause (b), a licence to commence or carryon business as a refiner shall not be issued or renewed if the Administrator, after giving the applicant a reasonable opportunity of presenting his case, is satisfied that the entire volume of the refining business done, or proposed to be done, by the applicant may be conveniently done at a refinery established or run by Government or by a corporation owned or controlled by Government. (d) Every order granting or rejecting an application for the issue or renewal of a licence shall be made in writing.] (7) Any person to whom a licence has been issued or renewed under this section shall comply with the provisions of every law, rule, regulation or bye-law for the time being in force relating to refineries. (8) A person lo whom a licence to carryon business as a refiner is issued under this section shall not carryon business as such refiner in the same premises in which he or any other person carries on business, whether as a dealer or otherwise, or as a money-lender or banker who lends or advances money on the hypothecation, pledge, mortgage or charge of any gold. (9) Every licensed refiner shall ensure that every person employed by him in the refinery complies, in the course of such employment, with the provisions of this Act or any rule or order made thereunder and of any other law relating to gold or foreign exchange for the time being in force. 18. Refiner to make standard gold bars only. - (1) A licensed refiner may make or manufacture standard gold bars but shall not, unless authorised by the Administrator so to do, make, manufacture or prepare primary gold in any other form: www.referencer.in 34 Provided that such refiner may, in the process of manufacturing standard gold bars, make, manufacture, or prepare primary gold. (2) Unless authorised by the Administrator so to do, a licensed refiner, shall not make, manufacture, prepare, repair or polish any article or ornament. 19. Standard gold bar to be stamped.- (1) Every licensed refiner who makes, manufactures or prepares standard gold bars shall put a stamp on each such gold bar certifying its purity and such stamp shall also contain such other particulars as may be prescribed. (2) No stamp referred to in sub-section (1) shall be used in stamping the standard gold bar unless such stamp has been approved by the Administrator. 20. Acquisition of gold by a refiner.- Subject to the provisions of section 8, a licensed refiner may buy or otherwise acquire or accept or otherwise receive primary gold, article or ornament from a person for the purpose of refining such gold for making, manufacturing or preparing standard gold bars therefrom. 21. Sale or delivery of gold by a refiner.- Save as otherwise provided in this Act, no licensed refiner shall sell, deliver, transfer or otherwise dispose of gold in any form, other than in the form of standard gold bars and no such sale, delivery, transfer or disposal shall be made to any person other than a licensed dealer or refiner or certified goldsmith: Provided that a licensed refiner may sell standard gold bars to any person on production by that person of a permit granted by the Administrator in this behalf or to such other person as the Administrator may authorise in this behalf. 22. Licensed refiner to comply with conditions, etc.- A licensed refiner shall not.- (i) buy or otherwise acquire or accept or otherwise receive, or www.referencer.in 35 (ii) melt, assay, refine, alloy or extract gold or subject it to any other process, or (iii) sell, deliver, transfer or otherwise dispose of, any gold, except under such conditions, limitations and restrictions as may be prescribed. 23. Prohibition regarding possession of gold not included in any return.- Except in the case of any quantity of gold acquired, accepted bought or received after the date of making of any return referred to in section 56, no licensed refiner shall, in his capacity as such refiner, either own or have in his possession, custody or control any gold which has not been included in such return: Provided that any gold acquired, accepted, bought or received after the date of making such return shall be included in the next succeeding return. 24. Licensed refiner not to keep in a refinery any gold which is not a part of his stock-in-trade.- Save as otherwise provided in this Act, no licensed refiner shall keep in his refinery any primary gold, article or ornament which is not a part of his stock-in-trade or held by him in his capacity as a refiner and every primary gold, ornament or article found in such refinery shall be deemed to be a part of his stock-in-trade or held by him in his capacity as a refiner. 25. Gold where to be refined when silver, etc., is also refined in the same premises.- If a refiner carries on, in the same premises, the business of refining silver or other metal, he shall carryon the business of refining gold in such part of the premises and under such conditions, limitations and restrictions as may be specified by the Administrator. 26. Silver refiner to keep record of gold recovered from such refining.- Every person who refines or melts silver, including its alloys, shall,- www.referencer.in 36 (a) maintain a record of gold, if any, recovered from such refining or melting; (b) declare on or before the fifth day of each month, in such form as may be prescribed, the quantity of gold so recovered during the months immediately preceding; (c) sell such gold within a period of thirty days from the date of such declaration or within such further period as, on sufficient cause being shown, may be allowed by the Administrator, to a licensed refiner or, if so authorised by the Administrator, to licensed dealer 5[or to such other person or authority as may be specified by rule made in this behalf]. ---------------------------------------------------------------------------------- 3Subs. by Act 26 of 1969, s. 4, for cl, (b) (retrospectively). 4Subs. by Act 26 of 1969, s. 4, for sub-section (6) (retrospectively). 5Ins. by Act 26 of 1969 S. 5 (w. e. C. 3-7-1969). CHAPTER VII DEALERS 27. Licensing of dealers.- (1) Save as otherwise provided in this Act, no person shall commence, or carry on, business as a dealer unless he holds a valid licence issued in this behalf by the Administrator. (2) A licence issued under this section,- (a) shall be in such form as may be prescribed, (b) shall be valid for such period as may be specified therein, (c) may be renewed, from time to time, and 6[(d) shall be subject to such. conditions and restrictions as may be prescribed.] www.referencer.in 37 (3) Every licence issued under Part XIIA of the Defence of India Rules, 1962, or under the Gold (Control) Ordinance, 1968 (6 of 1968), authorising the commencement or carrying on of business as a dealer, shall, if in force immediately before the commencement of this Act, continue to be in force until the expiry of the period of its validity or until the cancellation thereof, whichever is earlier. (4) A person who holds, at the commencement of this Act, a valid licence authorising him to commence or to carry on business as a dealer shall, if he intends to continue such business after the expiry of the period of its validity, make, at least one month before the expiry of such period, an application (in such form and on payment of such fees, not exceeding one hundred rupees, as may be prescribed) for the renewal of such licence. (5) A person who intends to commence, after the commencement of this Act business as a dealer, shall make an application (in such form and on payment of such fees, not exceeding one hundred rupees, as may be prescribed) for the issue of a licence. 7[(6) (a) No application for the issue of a licence to commence or carryon business as a dealer shall be granted unless the Administrator, having regard to such matters as may be prescribed in this behalf and after making such inquiry in respect of those matters as he may think fit, is satisfied that the licence should be issued. (b) No application for the renewal of a licence to carryon business as a dealer shall be rejected unless the holder of such licence has been given a reasonable opportunity of presenting his case and unless the Administrator is satisfied that- (i) the application for such renewal has been made after the expiry of the period specified therefor, or (ii) any statement made by the applicant at the time of the issue or renewal of the licence was incorrect or false in material particulars, or www.referencer.in 38 (iii) the applicant has contravened any term or condition of the licence or any provision of this Act, or any rule or order made thereunder or of any other law for the time being in force in so far as such law prohibits or restricts the bringing into or taking out of India of any goods (including coins, currency, whether Indian or foreign, and foreign exchange) or the dealing in such goods by way of acquisition or otherwise, or (iv) the applicant does not fulfil the prescribed conditions. (c) every order granting or rejecting an application for the issue or renewal of a licence shall be made in writing.] 8[(6A) Where the Central Government, having regard to the quantity of gold produced in India and the supply therein of gold through lawful channels, is of opinion that it is necessary or expedient in the interests of the general public so to do, it may, notwithstanding anything contained .in this section, direct the Administrator to restrict or reduce the number of licensed dealers to such extent and in such manner as may be specified by rules made in this behalf: Provided that no such rules shall come into force until the expiry of the period referred to in sub-section (3) of section 114 and if, before the expiry of the said period, both Houses of Parliament agree in making any modification in the rule or both Houses of Parliament agree that the rule should not be made, the rule shall come into force only in such modified form or be of no effect, as the case may be.] (7) (a) The Administrator shall specify, in each licence granted to a dealer the premises in which such dealer shall carryon business and no other person shall carryon business as a dealer in the said premises. (b) A licensed dealer shall not carryon business as such dealer in any premises other than the premises specified in his licence. www.referencer.in 39 (8) Every licensed dealer shall ensure that every artisan or other person employed by him complies, in the course of such employment, with the provisions of this Act or any rule or order made thereunder and of any other law relating to gold or foreign exchange for the time being in force. 28. Money-lending business not to be carried on in licensed premises.- No licensed dealer shall, unless authorised by the Administrator so to do,- (li) carryon business as a money-lender or banker on the security of any article, or ornament, or both, (b) permit any other person to carryon money-lending, banking or any other business, in the same premises in which he carries on business as such dealer. 29. What a dealer may manufacture.- Subject to the other provisions of this Act, a licensed dealer may make, manufacture, prepare, repair, polish or process ornaments and may also repair or polish articles but shall not, unless authorised by the Administrator so to do, make, manufacture or prepare any primary gold or article: Provided that such dealer may, in the process of making, manufacturing, preparing or repairing ornaments, make, manufacture or prepare primary gold (other than standard gold bar) by melting, processing or converting any article, ornament or standard gold bar acquired, accepted or received by him in accordance with the provisions of Part XIIA of the Defence of India Rules, 1962, or, as the case may be, the Gold (Control) Ordinance, 1968 (6 of 1968), or of this Act. 30. Ornament, etc., to be stamped.- (1) Every licensed dealer shall stamp every piece of article or ornament made, manufactured or prepared by him certifying the purity of the gold: www.referencer.in 40 Provided that nothing in this section shall apply to any article or ornament on which, owing to its nature or the smallness of its size, it is not possible to put such a stamp. (2) Every stamp referred to in sub-section (1) shall also contain such other particulars as may be prescribed. 31. Acquisition of gold by a dealer.- Save as otherwise provided in this Act, no licensed dealer shall buy or otherwise acquire or agree to buy or otherwise acquire or accept or otherwise receive or agree to accept or otherwise receive any article, ornament or primary gold from a person who is not a licensed dealer or refiner: Provided that any such dealer may buy or otherwise acquire or accept or otherwise receive or agree to buy or otherwise acquire or accept or otherwise receive from a person who is not a licensed dealer or refiner,- 9[(i) any ornament, unless he knows or has reason to believe that such ornament, being required to be included in a declaration, has not been so included,] (ii) any article which, being required to be included in a declaration has been so included, or where such article is not required to be included in a declaration, if the sale, delivery, transfer or disposal of such article has been authorised by the Administrator, (iii) any primary gold, if the person selling, delivering, transferring, or otherwise disposing of the same has been authorised so to do by the Administrator: Provided further that where any such dealer has delivered any article, ornament or primary gold to his artisan or a certified goldsmith, for the purpose of making, manufacturing, preparing, repairing or polishing any ornament, he may, after such ornament has been made, manufactured, www.referencer.in 41 prepared, repaired or polished, take back such ornament from the artisan or certified goldsmith, as the case may be. 10[32. Possession of primary gold by a licensed dealer.- (1) Save as otherwise provided in this Act, no licensed dealer shall have, at any time, in his possession or custody primary gold in any form except in the form of standard gold bars: Provided that nothing in this section shall apply to primary gold which is obtained in the process of, or in connection with, the making, manufacturing, preparing or repairing of one or more articles or ornaments, if the total quantity of such primary gold in the possession or custody of such dealer does not, at any time, exceed,- (a) four hundred grammes, if he does not employ any artisan, (b) five hundred grammes, if he employs not more than ten artisans, (c) one thousand grammes, if he employs more than ten but not more than twenty artisans, (d) two thousand grammes, if he employs more than twenty artisans: Provided further that the Central Government may, having regard to the needs of the trade, volume of business and the interests of the general public increase the quantitative limits specified in the foregoing proviso. (2) Where a licensed dealer has cut a standard gold bar and has transferred or delivered a part thereof to a certified goldsmith or an artisan for the purposes specified in section 35, he may, notwithstanding anything contained in sub-section (1), have in his possession or custody the remnant of such bar which is left with him, and in computing the quantities specified in the first proviso to sub-section (1), such remnant shall be excluded.] 33. Gold which is not a part of the stock-in-trade, not to be kept in the business premises of a dealer.- No licensed dealer shall keep or the premises where he carries on business as such dealer any primary gold, www.referencer.in 42 article or ornament which is not a part of his stock-in-trade or held - "him in his capacity as a dealer and every primary gold, ornament or article found in such premises shall be deemed to be a part of the stock-intrade of such dealer or held by him in his capacity as a dealer. 34. Sale or delivery of gold by a licensed dealer or certified goldsmith.- (1) A licensed dealer may sell, deliver, transfer or otherwise dispose of or agree to sell, deliver, transfer or otherwise dispose of ornaments to any person. (2) Save as otherwise provided in this Act, no licensed dealer shall,- (a) sell, deliver, transfer or otherwise dispose of or agree to sell, deliver, transfer or otherwise dispose of, or (b) expose or offer for sale, delivery, transfer or disposal,- (i) primary gold to any person other than a licensed dealer or refiner or certified goldsmith, , (ii) any article to any person other than a licensed dealer or refiner : Provided that a licensed dealer shall not sell or transfer primary gold to any other licensed dealer or to any certified goldsmith in any form except in the form of standard gold bars. (3) Notwithstanding anything contained in sub-section (2), a licensed dealer may sell or deliver primary gold or article to any person in pursuance of an authorisation made by the Administrator or on production by that person of a permit granted by the Administrator in this behalf. 35. Section 34 not to apply to the transfer of gold to a certified goldsmith or to an artisan.- Nothing contained in section 34 shall apply to the transfer or delivery, by a licensed dealer, of any primary gold or article to any certified goldsmith or artisan for the purpose of getting any ornaments made, manufactured, prepared, repaired or polished by such certified goldsmith or artisan. www.referencer.in 43 36. Acquisition, sale, etc., of gold to be subject to conditions.- Every acquisition, acceptance, sale, delivery, transfer or disposal of gold by a licensed dealer shall be made in accordance with such conditions, limitations and restrictions as may be prescribed in this behalf. 37. Licensed dealers may take assistance of specialists.- A licensed dealer may, in the course, and for the purpose, of manufacturing ornaments, send gold to any other dealer who possesses equipment for drawing wires or for die-casting or who is a specialist in stone-setting, engraving, enamelling, polishing or any other special process necessary for or ancillary to, the making, manufacturing, preparing, repairing or polishing of such ornament and that other dealer shall return such gold to the licensed dealer from whom he had received it after the completion of the process for which it was sent to him. 38. Prohibition regarding possession of gold not included in any return.- Except in the case of any quantity of gold acquired, accepted or received after the date of making of any return referred to in section 56, no licensed dealer shall, in his capacity as such dealer, either own or have in his possession, custody or control any gold which has not been included in such return: Provided that any gold acquired, accepted or received after the date of making such return shall be included in the next succeeding return. ---------------------------------------------------------------------------------- 6Subs. by Act 26 of 1969. II. 6, (or d. (d) (retrospectively). 7Subs. by s. 6 ibid. for sub-section (6) (retrospectively). 8Ins. by Act 26 of 1969, s. 6 (w.e.f. 03-07-1969). 9Subs. by Act 6 of 1969, s. 7, for cl. (i) (retrospectively). 10Subs. by s, 8, ibid. for s. 32 (w.e.f. 03-07-1969). www.referencer.in 44 CHAPTER VIII CRRTIFIED GOLDSMITHS 39. Certified goldsmiths.-(l) Save as otherwise provided in this Act, no person shall commence, ore carryon, business as a goldsmith after the commencement of this Act, unless he holds a valid certificate recognizing him as a goldsmith. (2) The certificate referred to in sub-section (1) (a) shall be in such form as may be prescribed, (b) shall be valid until the death of the holder, or the cancellation, thereof, whichever is earlier, and 11[(C) shall be subject to such conditions and restrictions as may be prescribed.] (3) Every certificate granted to a person under Part XIIA of the Defence of India Rules, 1962, or under the Gold (Control) Ordinance, 1968 (6 of 1968), recognizing him as a goldsmith, shall, if in force immediately before the commencement of this Act, continue to be in force until the death of the holder, or the cancellation, thereof, whichever is earlier. (4) On and from the commencement of this Act, the following classes of persons shall be eligible to apply for the grant of a certificate, namely:- (a) a person who had been carrying on business as a goldsmith for more than a year immediately before the commencement of Part XIIA of the Defence of India Rules, 1962 ; (b) a person who, at the commencement of this Act, is a member of the family of a certified goldsmith and had been assisting him in his work as a goldsmith for not less than one year; (c) a person who has received any loan from the Government under any scheme for the rehabilitation of goldsmiths and has made, within six months www.referencer.in 45 from the commencement of this Act, an application for the grant of a certificate: Provided that a certificate granted to such person shall be cancelled unless he repays the loan, within a period of two years from the date of the grant of such certificate, in such instalments as the authority by which the loan was granted may specify in this behalf. (d) an artisan if he surrenders his identity card as an artisan; 12[(e) a person who belongs to a prescribed category or class to the which, in the opinion of the Central Government, certificate may be granted. Explanation.-A person who is engaged as a hired labourer by a certified goldsmith shall not be eligible to receive a certificate under this section. 13[(4A) Where the Central Government, having regard to the interests of the general public, is of opinion that for the continuance or development "f the industry of semi-manufactures and manufactures of gold, it is necessary so to do, it may, notwithstanding anything contained in sub-section 4 by notification, empower the Administrator to entertain applications for the grant of certificates referred to in sub-section (1), from persons who possess such qualifications and fulfil such condition as may be prescribed. (5) Every application for the grant of a certificate referred to in sub section (1) shall be made in such form, in such manner and on payment of such fee, not exceeding ten rupees, as may be prescribed. (6) On receipt of an application for the grant of a certificate, the Administrator may, after making such inquiry, if any, as he may consider necessary as to the antecedents of the applicant, his competence to work as a goldsmith and his suitability for the grant of a certificate, by order, in writing, either grant the certificate or reject the application for the same. www.referencer.in 46 (7) Every certified goldsmith shall have in his possession the certificate granted to him while he carries on business as such goldsmith and shall produce it for inspection on demand by any Gold Control Officer. (8) A certified goldsmith may engage not more than one hired labourer to assist him in his work as a goldsmith but such hired labourer shall not make, manufacture, prepare, repair or process any article or ornament. 40. What a certified goldsmith may manufacture.- A certified Goldsmith may make, manufacture, prepare, repair, polish or process ornaments and may also repair or polish articles but shall not, unless authorised by the Administrator so to do, make, manufacture or prepare any primary gold or article: Provided that, subject to the provisions of section 42, a certified goldsmith may, in the process of making, manufacturing, preparing or repairing ornaments, make, manufacture or prepare primary gold (other than standard gold bar) by melting, processing or converting any article, ornament or standard gold bar acquired, accepted or received by him in accordance with the provisions of Part XIIA of the Defence of India Rules, 1962, or, as the case may be, the Gold (Control) Ordinance, 1968 (6 of 1968), or of this Act. 41. Restrictions on .acquisition or sale of gold by a certified goldsmith.- A certified goldsmith,- (a) may,- (i) buy standard gold bars from a licensed dealer or refiner, (ii) accept or otherwise receive any article, ornament or primary gold from a licensed dealer for the purpose of making manufacturing, preparing, or repairing ornament for such licensed dealer, (iii) accept or otherwise receive, subject to the provisions of section 8, from any other person any article or ornament for the purpose of making, www.referencer.in 47 manufacturing or preparing ornament for such person or for the purpose of repairing or polishing such article or ornament; (b) shall not save as otherwise provided in this Act, buy or agree to buy or sell or agree to sell any primary gold, article or ornament. 42. Limit on primary gold which a certified goldsmith may possess.- No certified goldsmith shall either own or have at any time in his possession, custody or control any quantity of,- (i) standard gold bars in excess of one hundred grammes, or (ii) any quantity of primary gold (including standard gold bars) in excess of three hundred grammes. 43. Section 37 to apply to certified goldsmith.- The provisions of section 37 shall apply so far as may be to a certified goldsmith as they apply to a licensed dealer subject to the modification that every reference therein to a licensed dealer shall be construed as a reference to a certified goldsmith. ---------------------------------------------------------------------------------- 11Subs. by Act 26 of 1969, s. 9, for cl. le) (retrospectively). 12Subs. by Act 26 of 1969, s. 9, for cl. (e) (retrospectively). 13Ins. by s. 9, ibid. (w.e.f. 03.07.1969). CHAPTER IX ARTISANS 44. Artisans.- (1) A licensed dealer may employ, whether on a whole time or part-time basis or on payment of daily wages or other remuneration, an artisan,- (a) who is or was a dealer or a goldsmith or was employed by a dealer, for a period of not less than one year immediately preceding the www.referencer.in 48 commencement of Part XIIA of the Defence of India Rules, 1962, or at any time thereafter but before the commencement of this Act, or b) who is eligible to obtain a certificate recognizing him as a goldsmith. (2) No person shall be employed by any licensed dealer as an artisan unless an identity card has been given to such artisan by licensed dealers and no artisan, the countersignature of whose identity card has been refused or whose identity card has been cancelled, shall be employed a licensed a dealer after such refusal or cancellation. (3) Before employing an artisan, a licensed dealer shall make inquiries to the antecedents of the artisan and grant him an identity card, which form and containing such particulars as may be prescribed, and enter the name and the prescribed particulars of such artisan in a register to be maintained in such form as may be prescribed and shall send such entity card within one month from the date of issue thereof to the Gold Control Officer for approval and countersignature. (4) On receipt of the identity card of an artisan under this Act the Gold Control Officer may, after making such inquiry, if any, as he may consider necessary, either countersign the identity card or if he is of opinion that the applicant is not a suitable person for employment as an artisan, refuse in writing to countersign such identity card. (5) The Gold Control Officer may, if he is satisfied that the particulars of an artisan, as entered in the register referred to in sub-section (3) are incorrect or false in material particulars or that the artisan has contravened any provision of this Act or any rule or order made thereunder or of any other law relating to gold or foreign exchange for the time being in force, cancel the identity card of such artisan: Provided that no such cancellation shall be made unless the artisan has been given a reasonable opportunity of showing cause against the proposed action. www.referencer.in 49 (6) The identity card,- (a) of an artisan, who is dismissed by the dealer by whom he is employed, or (b) the countersignature of which has been refused, or (c) which has been cancelled, shall be immediately recovered by the licensed dealer by whom the artisan holding such card is employed and such dealer shall immediately recover all the quantity of gold which was in the possession, custody or control of such artisan on the date of such dismissal, refusal or cancellation, as the case may be. (7) No licensed dealer or certified goldsmith shall accept employment as an artisan unless he has, before commencing work as an artisan, surrendered his licence or certificate, as the case may be, to the Gold Control Officer: Provided that where such licensed dealer or certified gold smith makes an application to the effect that he intends to resume business as such dealer or goldsmith, the licence or certificate, as the case may be, which was surrendered by him may be restored to him and thereupon he shall surrender the identity card which was granted to him under this section: Provided further that no such restoration shall be made if such dealer or goldsmith has, while functioning as an artisan contravened any provision of this Act or of any rule or order made thereunder or of any other law, for the time being in force, relating to gold or foreign exchange. 45. Functions of an artisan. - Subject to the other provisions of this Act, an artisan may make, manufacture, prepare, repair or polish ornaments and may also repair or polish an article, for the dealer by whom he is employed, but shall not, unless the dealer by whom he is employed is authorised by the Administrator, so to do, make, manufacture or prepare any primary gold or article: www.referencer.in 50 Provided that such artisan may, in the process of making, manufacturing, preparing or repairing ornaments, make, manufacture or prepare primary gold (other than standard gold bar) by melting, processing or converting any article or ornament or standard gold bar received by him from the licensed dealer by whom he is employed. 14[46. Limits on primary gold which an artisan may have in his possession.- The total quantity of primary gold in the possession or custody, whether individually or collectively, of the artisans employed by a licensed dealer shall not, at any time exceed the quantitative limit applicable, under sub-section (I) of Section 32, to such dealer.] 47. Restrictions on the acquisition, possession or disposal of gold by an artisan.- (1) An artisan may accept article, ornament or primary gold from the licenced dealer by whom he is employed for the purpose of making, manufacturing, preparing, repairing or polishing ornaments for such dealer. (2) No artisan shall, save as otherwise provided in this Act.- (i) buy or otherwise acquire or agree to buy or otherwise acquire, or (ii) accept or otherwise receive or agree to accept or otherwise receive, or (iii) sell, deliver, transfer or otherwise dispose of or agree to sell, deliver, transfer or otherwise dispose of, any article, ornament or primary gold. 48. Artisan not to work at any place other than the premises of the dealer.- An artisan shall not work as such at any place other than the premises specified in the licence issued to the dealer by whom he is employed. 49. Artisans to carry identity cards with them. - Every artisan shall have in his possession the identity card granted to him while he carries on work as www.referencer.in 51 such artisan and shall produce it for inspection on demand by any Gold Control Officer. ---------------------------------------------------------------------------------- 14Subs. by Act 26 of 1969, s. 10, for s. 46 (w.e.f. 03-07-1969). CHAPTER X CANCELLATION AND SU5PENSION OF LICENCES AND CERTIFICATES 50. Cancellation or suspension of licence or certificate.- (1) The Administrator may, if he has any reasonable cause to believe that the holder of any licence or certification issued, renewed or continued under this Act has made any statement in, or in relation to, any application for the issue or renewal of a licence or for the issue of a certificate under this Act which is incorrect or false in material particulars or has contravened any provisions of Part XIIA of the Defence of India Rules, 1962, the Gold Control) Ordinance, 1968 (6 of 1968), or of this Act or any rule or order made thereunder or of any other law for the time being in force which prohibits, restricts or regulates the bringing into or taking out of India of any goods [including coins, currency (whether Indian or foreign) and foreign exchange] or the carrying, removing, depositing, harbouring, keeping, concealing, selling or purchasing such goods or the making of any payment in relation to such goods, 15[suspend such licence or certificate, as the case may be, pending the completion of any inquiry or trial against the holder of such licence or certificate, for making such incorrect or false statement or for such contravention, as the case may be: Provided that no such licence or certificate shall be suspended for a period exceeding ten days unless the holder thereof has been given a reasonable opportunity of showing cause against the proposed action.] 16[* * * * *] www.referencer.in 52 17[(IA) The Administrator may, if he is satisfied, after making such inquiry he may think fit, that the holder of any licence or certificate issued, renewed or continued under this Act has made such incorrect or false statement as is referred to in sub-section (1) or has contravened the provisions of such law, rule or order as is referred to in that sub-section, cancel such licence or certificate, as the case may be : Provided that no licence or certificate shall be cancelled unless the holder thereof has been given a reasonable opportunity of showing cause against the proposed action.] (2) Every person whose licence or certificate has been suspended shall, immediately after such suspension, stop functioning as such licensee or holder of such certificate and shall not resume business as such licensee or holder of such certificate until the order of such suspension has been vacated. (3) Every person who holds a licence or certificate which is suspended or cancelled shall, immediately after such suspension or cancellation, surrender such licence or certificate, as the case may be, to the authority by which such licence or certificate was issued. 51. Cancellation of licence or certificate on application by dealer, refiner or certified goldsmith.- A licensed dealer or refiner or a certified goldsmith who discontinues, or intends to discontinue, business as such dealer or refiner or certified goldsmith, may make an application to the Administrator for the cancellation of his licence or certificate, as the case may be, and thereupon the Administrator may cancel the licence or certificate which was issued or renewed to such dealer or refiner or certified goldsmith. 52. Licence to a firm to be invalid if there is any change in the partnership of a firm.- Where any firm has been licensed under this Act to carryon business as a dealer or refiner, such licence shall, notwithstanding anything contained in this Act, become invalid on and from the date on which there is www.referencer.in 53 a change in the partnership of such firm, unless such change in the partnership has been approved by the Administrator. 53. Disposal of gold in the possession of licensed dealers, refiners and certified goldsmiths in certain cases.- Where the period of validity of any licence issued to a dealer or refiner has expired or where any application for the renewal of such licence has been rejected, or where such licence or a certificate granted to a goldsmith, has been cancelled, such dealer, refiner of certified goldsmith, as the case may be, shall, within thirty days from the date of such expiry, rejection or cancellation,- (i) sell or otherwise transfer to any other licensed dealer or refiner the entire quantity of gold (other than ornaments) in his possession, custody or control on the date of such expiry rejection or cancellation, as the case may be, and send intimation thereof to the Administrator; and (ii) either sell or otherwise transfer or take over as personal property any ornament which is in his possession, custody or control on the said date. 54. Display of licences.- Every licensed dealer and every licensed refiner shall display his licence at a conspicuous place of the premises in which he carries on business as a licensed dealer or refiner. ---------------------------------------------------------------------------------- 16Ins. by Act 26 of 1969, s. 11 (retrospectively) 17Cl. (i) omitted by s. 11 ibid. (w.e.f. 03-07-1969 18Subs. by s. 11. ibid. for cl. (ii) and proviso (retrospectively). CHAPTER XI ACCOUNTS AND RETURNS 55. Accounts.- (1) Every licensed dealer, every licensed refiner and every certified goldsmith shall keep, in such form and in such manner as may www.referencer.in 54 prescribed, a true and complete account of the gold owned, possessed

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