Confusing Gold Exchange Policy at Joyallukas, Habsiguda – Anyone Else Faced This?

Wanted to share something that happened during our recent visit to Joyallukas Habsiguda branch (Hyderabad) and get your thoughts.

We went there to exchange some old gold ornaments (a mix of 21K and 20K) for new ones. Based on my understanding, the exchange value should be calculated like this:

Exchange Value = Weight × (Measured Carat ÷ 24) × 24K Gold Rate

However, the staff there said something very different. They told us that before applying the carat conversion, they deduct 12% weight for 21K gold and 18% weight for 20K gold, and then calculate using the 22K gold rate instead of 24K!

So according to them, the formula becomes:

Exchange Value = (Weight - 18%) × (Measured Carat ÷ 24) × 22K Gold Rate

When we asked why, they said this is a “standard Joyallukas policy” that applies across all branches for anything below 22K.

Honestly, this sounded strange to me. I couldn’t find this policy mentioned anywhere on their website or documentation. If true, that’s quite a significant reduction in value — especially when most people assume it’s a straightforward purity-based calculation.

Has anyone else faced something similar at Joyallukas or other jewellery chains (like Malabar, Tanishq, etc.) when exchanging non-standard karat gold (like 20K or 21K)?

Would really appreciate if someone with industry experience could shed light on how gold exchange value is actually supposed to be calculated for lower carat gold.

I’ve also written to their customer care asking for clarification, but wanted to check if this is a common experience or just specific to this branch.