Bombay Bullion Association Told To Stop Quoting Gold, Silver Rates

The Monopolies and Restrictive Trades Practices (MRTP) Commission issued a notice to the Bombay Bullion Association (BBA) on Monday directing it to refrain from quoting gold and silver rates from Monday on the basis of a complaint lodged by former BBA director Dinesh Parikh.

Parikh told Business Standard: "My complaint had noted that the prices of gold and silver quoted by BBA were not accurate."

A well-placed source said: "The prices being quoted by the BBA were found to be varying sharply as compared to international bullion rates. Moreover, only last month, the price fluctuation on one gold biscuit (ten-tola) varied from Rs 50,500 to Rs 53,500 in a single day, thereby arousing suspicions".

BBA president Mukul Sonawala confirmed that a notice had been received alleging malpractices and price fixing but said that the BBA would seek a stay from the Supreme Court. He said that the MRTP Commssion had issued a notice in January 1999 directing the BBA to stop quoting rates, pending an investigation.