Mumbai: In another surprise, prominent Diamantier has allegedly defaulted on loans worth over Rs 6,710 crore to the government-backed private sector IDBI Bank Ltd, Mumbai, official sources said.
The amount due also includes a significant foreign exchange component of over $161,000, or approximately Rs 1.20 crore.
Banking circles describe it as the “second largest” default of its kind realized by the diamond industry entity after the infamous Punjab National Bank scam of around Rs 14,000 crore involving Mehul Choksi and Nirav Modi – which broke out in early 2018, rocked the banking industry. in the country.
IDBI Bank Ltd – owned by India’s Life Insurance Corporation, which is preparing for its long-awaited IPO in early 2022 – has started measures to recover money owed from defaulters.
The diamond company is Sanghavi Exports International Pvt Ltd, headquartered in Bandra Kurla Complex, along with 4 associates and 13 persons of directors/promoters/guarantors etc.
The Mumbai-based companies are: Sanghavi Diamonds Manufacturing Pvt Ltd, Sanghavi Jewelry Manufacturing Pvt Ltd, Sanghavi Star Retail Pvt Ltd and Royal Estate Holding (India) Pvt Ltd, which have two factories in Surat and an office in Mumbai.
The named directors are a trio of brothers – Kirtilal R. Sanghavi, Chandrakant R. Sanghavi and Rameshchandra R. Sanghavi – all from the center of the diamond industry in Surat.
Besides other family members, men and women, from Surat and Mumbai, Directors/Promoters/Guarantors included – Kalpesh in Sangavi, Jayesh in Sanghvi, Ketankumar in Sanghvi, Virendrakumar K Sanghvi, Agam Si Sanghvi, Bharati V Sanghvi, Nikita V Sanghvi, Primila K Sanjavi, Kalpana R. Sanjavi, Devika C. Sanjavi.
Indications that all was not well with the Sanghavi clan returned in October 2018 when a consortium of lenders led by the Bank of India seized the company’s property in the Bharat Diamond Bourse, Bandra Kurla Complex, alleging non-payment of Rs 468 loans. crore.
In a sharp reaction, Vishwas Utagi, president of the All India Bank Employees’ Union, said the new discoveries were “really amazing” and questioned why it had been kept secret so far, especially since it had a poor track record in the past.
He noted that IDBI Bank Ltd is jointly owned by the Center and LIC with approximately 97 per cent, yet the Reserve Bank of India granted it the status of ‘private bank’ in 2019.
“However, with such huge scams lurking in the ‘government-owned private bank,’ which will now be liable for losses – center officials, LIC or IDBI officials – particularly since the LIC IPO soon,” he said. Otagi IANS.
The banking expert has demanded a thorough investigation by CBI/ED or other agencies as well as for alerts to be issued to ensure they do not sneak out of the country like Modi-Choksi’s duo “Mama-Bhanja”.
Official sources confirmed that IDBI Bank Ltd had sent notifications two months ago to all concerned but there has been no response.
Diamond industry sources claim that the Sanghavi clan has not left the country and is “very much present” in Gujarat and Mumbai, and is even seen regularly in public.
Recently, IDBI Bank Ltd followed up with public notices calling on all the above-mentioned entities and individuals to pay their long outstanding dues.
It also warned the public to refrain from any kind of deal with them as the bank has to recover the huge amounts owed from them.
IANS’ efforts to obtain a copy from the IDBI Bank Ltd team did not materialize.