Sambhal: The Uttar Pradesh State Tax Department carried out a major anti-evasion operation in Sambhal district, seizing undeclared gold, silver and diamond jewellery worth around ₹33 crore from a jeweller following a marathon 21-hour search. During the operation, the trader deposited ₹1.20 crore on the spot towards tax and penalty.
Officials said the action was launched after receiving repeated inputs about bullion traders allegedly exploiting rising gold and silver prices to conduct transactions without valid documentation. Based on sustained surveillance for nearly a month, enforcement teams identified the Sambhal-based jeweller for inspection.
On February 4, a 10-member enforcement team from the Moradabad zone simultaneously raided the jeweller’s showroom and residence at around 1 pm. The search continued through the night and concluded after nearly 21 hours.
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Stock far exceeded official records
During verification, the trader failed to produce legitimate purchase documents for the jewellery found on the premises. While the stock register showed only 439 grams of gold jewellery and approximately 120 kg of silver, officers recovered 16.638 kg of gold ornaments, 875 kg of silver jewellery and 34.43 carats of diamonds.
According to department officials, there was no accounting record for the seized items. Based on prevailing market rates, the total value of the undeclared jewellery has been estimated at nearly ₹33 crore. The entire stock has been seized under tax provisions.
Apart from the jewellery, loose slips and mobile phones were also confiscated from both the showroom and residential premises. Authorities are now analysing the digital data to determine the scale and duration of off-book transactions and to identify whether other individuals or entities were involved.
Jewellery market rattled
The operation has sent shockwaves through the local bullion trade, with traders expressing concern over intensified enforcement. Department officials said similar drives would continue across the region, with close monitoring of high-risk businesses.
The raid was conducted on the directions of senior commercial tax officials. The enforcement team included deputy commissioners, assistant commissioners and several state tax officers, who coordinated the simultaneous searches and inventory assessment.
Further action likely
Officials indicated that follow-up action could be initiated at additional locations based on the analysis of seized documents and electronic records. The department is also probing whether the jewellery supply was part of a wider organised network operating without proper billing.
Reiterating a zero-tolerance approach towards tax evasion, the State Tax Department said strict action would be taken against traders found dealing in goods without invoices or using fraudulent documentation.
The crackdown comes at a time when precious metal prices are hovering near record highs, raising concerns among authorities that some businesses may be leveraging the surge to conduct large-scale unreported transactions.
The Sambhal seizure marks one of the significant enforcement actions in recent months and underscores the department’s push to curb tax evasion in the bullion sector.
About the author — Suvedita Nath is a science student with a growing interest in cybercrime and digital safety. She writes on online activity, cyber threats, and technology-driven risks. Her work focuses on clarity, accuracy, and public awareness.
