Holding Saurabh Gadgil of PNG Jewellers Pvt Ltd responsible for extracting additional money in the name of government taxes while buying back a diamond bangle from a customer, the Pune district consumer disputes redressal commission directed the jeweller to buy back the diamond bangle as per the prevailing market rate, deduct making charges and an additional 10% amount and refund the balance to the customers.
In an order passed on 2 January 2025, the commission says, "When all terms and conditions (T&C) were clearly mentioned on the bill, why did PNG Jewellers need to use an additional (rubber) stamp stating that 'exchange 100% and buyback 90% on invoice value, excluding making charges and government taxes'? It is expected that the value of the diamond bangle purchased in 2017 would be higher in 2022. However, due to the position taken by the jeweller, the customer would have received a much lower value after five years, which falls under the definition of unfair trade practices."
The commission also directed Mr Gadgil from PNG Jewellers to pay Rs30,000 as compensation and Rs7,000 litigation costs to the customers.
The case is related to a diamond bangle worth Rs3.59 lakh bought on 18 December 2017 by Hadapsar, Pune-based Anand and Aishwarya Ranjalkar from PNG Jewellers. While buying the bangle, they were assured by the salesperson that in case they want to sell it, they would receive money based on the prevailing market rate minus making charges and a 10% standard deduction. The same thing was also mentioned in the bill.
On 9 January 2022, when the Ranjalkars wanted to sell the diamond bangle, they were told the buyback price, excluding making charges, 10% deductions and government taxes. They were shocked at the price which was much lower than the fair valuation. When they asked, the salesperson showed them a stamp on the bill, which the Ranjalkars claimed was not there when the bill was signed by them. "We would have never bought the diamond bangle based on what was mentioned on the stamp," they said.
After all their efforts to get the issue resolved with the help of PNG Jewellers failed, the Ranjalkars approached the Pune district consumer commission.
In its written statement, PNG Jewellers refuted all charges and claimed that Mr Gadgil was not involved in the deal and there was no agreement between the Ranjalkars and Mr Gadgil. PNG Jewellers also accepted that on 24 November 2017, it launched 'The Sultan of Diamond Sales' scheme under which they offered a discounted price of Rs49,000 per carat for diamonds instead of the prevailing market price of Rs65,000 at that time.
"The salesperson put the stamp on the invoice before the Ranjalkars and then only sent it to the cashier. The Ranjalkars have complete knowledge about the contents of the stamp and still they kept quiet and never complained about this till 9 January 2022. They filed this complaint only to extract money from Mr Gadgil," the company contended.
The commission referred to point 5 of the T&C of PNG Jewellers which stated that "Policy for diamonds (jewellery/loose diamonds), diamond-studded jewellery 100% exchange along with making charges. In case of encashment, 90% will be returned on the diamond ornament, including making charges. However, a bill and certification are compulsory for encashment and exchange. This diamond policy is valid only for diamond-studded jewellery, which means that an exchange or refund cannot be made from diamond jewellery to gold or silver jewellery..."
After referring to the content of the stamp, the commission observed that after mentioning the T&C on the invoice, PNG Jewellers did not respond in its written statement as to why it needed to put the stamp on the invoice. "In case it wanted to include an additional condition, then PNG Jewellers should have created a new bill, which would have been the proper way. However, what was told to the Ranjalkars by the salesperson and what is mentioned in the stamp are two different things. Due to this, the complainant suffered financial loss and mental harassment."
"Deducting making charges while buying back jewellery by PNG Jewellers is what is followed by all jewellers. However, collecting an additional amount in the name of government tax is not appropriate. In its written statement, PNG Jewellers has nowhere explained what tax it has been deducting and how it obtained the permission to deduct this government tax," the commission says.
While allowing the complaint, the Pune district consumer commission directed PNG Jewellers to buy back the diamond bangle as per the prevailing market rate and, after deducting making charges and an additional 10% amount, refund the balance to the Ranjalkars.
The Ranjalkars were directed to sell the diamond bangle within 45 days to PNG Jewellers and get the buyback value as mentioned in the above paragraph.
The commission passed the order on 2 January 2025. However, there is no progress. The Ranjalkars have now filed execution petitions under Sections 71 and 72 of the Consumer Protection Act.
Moneylife sent emails to Mr Gadgil and PNG Jewellers. Up to the time of writing the story, we have not received any reply from them. We will update this story as and when we receive any reply from them
(Complaint No. CC/22/75 Date: 2 January 2025)
