Diamantaire group defaults on IDBI Bank's mega loans of Rs 6,710 cr

Mumbai, Dec 20 In another stunner, a prominent diamantaire has allegedly defaulted repaying loans worth over a staggering Rs 6,710-crore to the government-backed private sector IDBI Bank Ltd, Mumbai, official sources said.

The outstanding amount also comprises a significant foreign currency component of more than $161,000, or roughly Rs 1.20 crore.

Banking circles describe it as the "second biggest" default of its kind notched by a diamond industry entity after the infamous Punjab National Bank scam of around Rs 14,000 crore involving Mehul Choksi and Nirav Modi - erupted in early 2018, shaking the country's banking industry.

The IDBI Bank Ltd – owned by the Life Insurance Corporation of India, which is preparing for its much-anticipated IPO in early 2022 – has initiated measures to recover the outstanding monies from the defaulters.

The diamond company is Sanghavi Exports International Pvt Ltd, with headquarters in Bandra Kurla Complex, besides its 4 associate companies and 13 persons who are 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

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