Diamond inventory of Mumbai-based firm sealed in Antwerp and Mumbai

The diamond inventory of a reputed Mumbai-based diamond firm being sealed in Antwerp and Mumbai, has shaken the Mumbai diamond trade circuit, reports suggest. The firm deals in wholesaling rough, polishing and jewellery manufacturing.

The incident occurred on 12th December, and the cause was cited as overdue debts to one of the largest banks financing the diamond industry, reports add. The debt is estimated at more than $200 million, reports say.

The bank had held discussions with the company over several months in the past following its demand that the company reduce its debt, reports say. The bank turned to a court, which issued an order for seizing the entire inventory when the negotiations failed. In addition, customers of the company have been informed to pay any outstanding invoices directly to the bank. The amount of the company’s debts to other diamond firms is not known, reports say.

The Mumbai-based firm in question is a DTC Sightholder with two Sights in London and a Sight in Botswana, a contract buyer with Alrosa, a Term and Spot customer of BHP Billiton and a client of Harry Winston.

This incident has caused concern in the Mumbai diamond industry. And also that whether the said bank will in the long term reduce its attention to the diamond industry, and will this also affect intentions of other financial institutions, in turn affecting the credit of diamond companies and restrict operations.