After the $2 billion worth of fraud allegations against Indian jewelry tycoon Nirav Modi and Gitanjali Gems chief Mehul Choksi shocked the Indian diamond industry, the last thing it needed was more bad news, which is precisely what they got. Jewelry chain Kanishk Gold, which also owns the Krizz jewelry brand, has been named in defrauding 14 banks, including the Punjab National Bank (PNB) and the State Bank of India (SBI), for an amount close to as $126.4 million, or Rs 824 crore. Taking into account interest due, the loss to banks exceeds $153 million (Rs 1,000 crore). The SBI has sought th
The latest fallout from the Nirav Modi-Gitanjali scandal that has rocked India's diamond and jewelry sector comes in the form of the State Bank of India's (SBI) decision to tighten the collateral demands on borrowers from the industry. India’s largest lender has told borrowers in the gems and jewelry sector to either bring in more collateral to back their existing loans or reduce the size of them in a timely manner.
Stéphane Fischler, President of the International Diamond Council, founding member of the European Council of Diamond Manufacturers, Vice President of the World Diamond Council and President of the Antwerp World Diamond Centre talks to Manisha Gupta on India's CNBC-TV18. He shared his view of the Indian diamond industry and the road ahead for its diamond market. An abbreviated version:
CNBC: How do you see diamond consumption growth in India?
The 100-year-old Indian diamond house and one of the largest in the trade, Shrenuj & Co., has run into trouble as lenders tighten their grip on the group which has survived across four generations, reported The Economic Times last week. Banks - including Bank of India and ICICI - with a combined exposure of around $450 million, have obtained a court order to repossess the company's diamond inventory and restrict the promoters' travel.
All India Bank Employees Union (AIBEA), one of the biggest employee unions in India, has decided to publish the list of top 50 corporate defaulters in India. Bank union AIBEA also demands that banks recover bad loans from these willful defaulters. At number two on the list, Winsome Diamond and Jewellery Co now has more than $385 million in unpaid loans. Also in the top ten at number nine, Forever Precious Jewellery & Diamonds has over $180 million in unpaid loans. The third diamond industry firm listed, MBS Jewellers Pvt.