Ahmedabad:
A massive loan default running into hundreds of crores, by a leading diamond company on loan repayments, has sent shockwaves in the Indian diamond industry.
Apex industry body Gem & Jewellery Export Promotion Council (GJEPC) has initiated efforts to settle the issue between the company and the lender banks.
According to industry experts, JB Diamonds, a DTC sight-holder and a leading diamond company, has been unable to repay loans to the tune of Rs800 crore to a group of banks, on account of financial troubles. The company had taken the loans from a consortium of a dozen banks led by SBI in 2008 and 2009, but has defaulted on repayments.
The lender banks took up the loan default issue with GJEPC during a meeting yesterday. The banks also informed that they have listed dues of JB Diamonds as NPAs (Non Performing Assets). Shocked by the size of the default and its possible implications on the industry, the GJEPC has offered to mediate in the matter.
"We are holding talks with both sides and are playing the role of mediator in the dispute, in the larger interest of the diamond industry," said Sanjay Kothari, vice chairman of GJEPC.
Meanwhile, Jivraj Dharukawala, partner in JB Diamonds, said, "We intend to repay the loans in entirety. We have already repaid loans worth Rs260 crore and have given security worth another Rs100 crore to lender banks. We have been unable to repay the remaining loans due to delays in receiving payments from clients."
Ironically, the company had hit the headlines in 2007 when the owners purchased a new aircraft for around Rs75 crore, and brought it to Surat amid much fanfare.
Copyright restricted. Under license from
www.3dsyndication.com