Kerala - Thrissur   

Temporary respite for diamond units

By Our Staff Reporter

THRISSUR, FEB. 8. The diamond cutting industry in Thrissur, which was on the verge of collapse following the seizure of raw diamonds by the police and Sales Tax (ST) Department, has got a temporary relief with the unit owners and the Government officials working out a formula for the release of the seized diamonds.

To release diamonds

Industry sources said the Sales Tax officials had agreed to release the diamonds if the unit owners produced a bond for Rs. 3.45 lakhs. The hearing in the ST case was likely to be held soon for final disposal.

The raw diamonds were seized by the police party led by the Walayar SI when they were being brought from Coimbatore for carrying out the polishing works in the diamond cutting units in Thrissur at Vadakkanchery on February 2.

The vehicle, in which the diamonds were being brought, its driver as well as the three diamond cutting unit owners in the vehicle from Thrissur were also taken into custody.

The Walayar SI then handed over the case to the Vadakkanchery police. The initial allegation was that the unit owners were smuggling the raw diamonds. But, later, it was amended to suggest that the unit owners were transporting diamonds without proper documents. The police then handed over the case to the ST officials who in turn demanded that unit owners must pay lakhs of rupees as sales tax for releasing the diamonds.

Legal confusions

Sales tax officials said the problem had cropped up because of the confusions in the ST Act in the State. The Act did not specify what kind of document a person must carry when he or she was transporting his own goods or some items like raw diamonds for job works.

"The Legislators must actually be going through the lapses of the law and bring in appropriate amendments instead of trying to pressurise us. As per the existing law, when such an issue is brought to our notice we can only impose ST and penalty on such goods which are being transported without proper documents. Political leaders must first of all ask the police under what provisions of the law have the police seized the raw diamonds," said a senior ST official.

Industry circles, however, pointed out that raw diamonds were being transported from places like Coimbatore and Mumbai for more than three decades for processing in the numerous units in the district.

Such transportation of raw diamonds was taking place in other States also. So far there had not been any such instance of a seizure of raw diamonds from anywhere in the country.

"If the Government does not intervene urgently to prevent such unnecessary harassment, the industry which is providing employment to about 6,000 people in the district will come to a grinding halt. Even in this case, the person from Coimbatore who had provided the raw diamond to the units in Thrissur has threatened to stop the supply if the officials cause such hardships,'' said a leader of the owners' association.

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