Chennai : A PIL has been filed in the Madras High Court seeking a direction to Reserve Bank of India to frame rules to ensure "title and tax payment" for gold and gold ornaments while being pledged in banks. At present there are no rules and regulations framed by RBI for banks to lend money against gold ornaments, G.Annadurai, an advocate, in his petition said. The petitioner submitted that purity of gold was enough for mortgage of gold in banks. Any person can mortgage anyone's gold with or without owner permission, even stolen gold also, the petitioner claimed. Ensuring of title, tax payments and proper documentation was not at all taken into account by banks because no rules had been framed by RBI, the petitioner contended. The petitioner alleged that advancing or lending money against gold and gold ornaments is an illegal activity when there were no rules and regulations by RBI for the same.
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