Gold has always been a precious and valued asset for Indians. It has an added importance in view of its widespread use in times of weddings. Indians’ sentimental attitude towards the metal only accentuates the price, which recently hit a new high. In the past, attempts were made to control the purchase or possession of gold. A serious bid was made in the 1960s, and there was a Tamil Nadu connection to it.
On the night of January 9, 1963, the then Union Finance Minister, Morarji Desai, in a nationwide broadcast [an act which has ordinarily been performed by Prime Ministers], announced that possession of gold, with the exception of ornaments and small quantities in other things, without declaration, would be illegal under the Gold (Control) Rules. Under the rules, production of gold jewellery above 14 carat was banned and a licence was required for refining gold. The new measure was brought in through an amendment to the Defence of India Rules. The major reason cited for the decision was smuggling, which led to the loss of several crores of rupees in foreign exchange. At that time, gold import was banned.
