Something Is Rotten In The Indian Diamond Industry

Compliance
28/10/2015 10:08

Industry analyst Vinod Kuriyan writes on the dismal state of affairs in the Indian diamond industry today. The most recent scandal - the data breach at the Gemological Institute of America (GIA), where several Indian diamond companies got former employees of the GIA’s technology provider to hack into the system and alter color and clarity grades for 1,042 diamonds they had submitted, in an attempt to increase their value and dupe consumers - is not an isolated incident by any means, writes Kuriyan. He also points to a string of recent high-profile bankruptcies, some for hundreds of millions of dollars, with the defaulters and their friends walking away clean while the banks and the rest of the industry had to pick up the bill. Many of the companies involved "had been in financial trouble for years." Kuriyan calls on the GJEPC and bodies like the Bharat Diamond Bourse (BDB) to institute tough measures to curb this fast and loose way of operating.