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11,660 Crore default scam rattles Indian Banks
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JGGL Joins AIGS and GGTL Laboratories in 'Gem Alliance'
The Asian Institute of Gemological Sciences Laboratory announced that Japan Germany Gemmological Laboratories (JGGL) has joined the Gem Alliance, which was launched in December of 2017.
In 1995, Masashi Furuya founded JGGL in Kofu city, an important gemstone area in central Japan, with Prof. Dr. Hermann Bank more
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Accused NIrav Modi absconding. Banks have been recently wary of lending to the Diamond sector due to history of defaults and collateral misappropriation by a few Diamond companies. The Diamond Industry has always been fighting to get back bank lending with little success. The recent default scam of Rs 11,600 crore by one of the leading Diamond jewellery retailer Nirav Modi, nephew of one of the largest Indian jeweller Mehul Choksi has rattled not only Indian Banks, but also the government. Misuse of LOU [Letter of Undertaking]
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coupled with inefficient bank staff members has led to one of the major default scams that India has seen in the recent years.
Recovery process has begun as the accused Nirav Modi has fled the country leaving behind a perplexed and shocked Diamond and jewellery sector. Punjab National Bank is the most effected in the scam staring at the herculean task of recoveries, staff terminations, and falling stock prices. Along with Punjab National Bank, there are other leading Indian Banks who have to bear the brunt of the default.
The Indian Diamond and Jewellery sector which is currently getting to terms with government and taxation policies seem to be facing another big blow because of the default and all hopes are on the Diamond sector too to help the authorities.
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