31 Jan 2023
DiamondWorld Directory
Home |
Public sector lenders serve legal notice on Winsome Diamonds
Bank officials and investors haven't been able to contact Jatin Mehta the company's promoter
By: Diamond World News Service
Jan 18 2014 11:41AM
Reference: 8730  

Gem and jewellery company Winsome Diamonds which has been in the spotlight for having defaulted in loan payments, has been served legal notices by the public sector lenders, including Punjab National Bank (PNB) and Central Bank, to recover loans.

A senior official from one of the lenders to the company confirmed legal proceedings had been initiated for the recovery of loans and added serving a legal notice was the first step in that regard. "Yes. We have received legal notices from banks," said a senior Winsome Diamonds official.

In November 2013, banks had served notices on Winsome Diamonds and its sister concern Forever Precious Jewellery with the intention that the two companies be declared "wilful defaulters", following which an inquiry by the Central Bureau of Investigation (CBI) could be initiated. The Reserve Bank of India defines a wilful defaulter as a borrower that is able but unwilling to pay, and has diverted loan proceeds towards ends other than the initially stated use or has overstated profits to secure a loan.

So far, bank officials and investors haven't been able to contact Jatin Mehta, the company's promoter. When contacted, Ramesh Parikh, the company's director, said, "As the matter is sub judice, we will not be able to comment." It is learnt the company has received notices from at least three public sector banks. "It is a concerted effort and, therefore, all 15 lenders must have sent legal notices to Winsome Diamonds," said the company official quoted earlier.

In March 2013, Winsome Diamonds' foreign clients failed to pay their dues, following which, foreign banks encashed the letters of credit given by Indian banks, which now have bad loans of Rs 3,800 crore on this account. Forever Precious Jewellery has defaulted to the tune of Rs 1,700 crore. Foreign clients owe more than $870 million to Winsome Diamonds and about $370 million to Forever Precious and have promised all steps possible to repay the dues.

Sources said in Singapore, Jatin Mehta had set up one of the largest lab-grown diamond (LGD or synthetic diamond) facilities in the world. He had also acquired a majority stake in Genesis, a US-based synthetic diamonds company. "Mehta's sons are associated with a company engaged in the manufacture of lab-grown diamonds. We do not have any information on the level of activity or the countries where LGDs are exported by this company," said a company official.

At a board meeting of the company on January 10, there was a consensus that to the extent possible, media queries would be replied to only after being referred to the company's board.

Follow DiamondWorld on Instagram: @diamondworldnet
Follow DiamondWorld on Twitter: @diamondworldnet
Follow DiamondWorld on Facebook: @diamondworldnet
Have Your Say
* Your view
* Name:
* Email:
* Town/city:
* Country/State:
*  Company:
*  Name:
*  Mobile:
*  Email:
Subscribe for DiamondWorld weekly Newsletter
Search News by City
Recent Issue
News in Pictures
Young Diamantaires
Pictures: 16
Stunning Jewellery from Cannes 2019
Pictures: 24
Sparkly Jewels at Oscars 2019
Pictures: 19
Golden Globes 2018
Pictures: 15
Spotted: Who Wore What (December 2018)
Pictures: 4
India Diamond Week
Pictures: 8
Spotted: Who Wore What (October 2018)
Pictures: 7
Spotted: Who Wore What (September 2018)
Pictures: 6
70th Emmy Awards
Pictures: 11
35th India International Jewellery Show 2018
Pictures: 46
JJS - IJ Jewellers Choice Design Awards 2015 powered by GIA
Views: 32408
Diamond World Expert Hour with Evgeny Agureev, Deputy CEO, ALROSA
Views: 10086
GJEPC Chairman Interview
Views: 28495
IJ Jewellers Choice Design Awards 2012 - Part 1
Views: 39970
Promo for IJ Awards 2012 at NDTV Profit
Views: 57546
IJ Jewellers Choice Design Awards 2012- Part 2
Views: 69152
Couture India 2016 - A Business Boutique Show by IJ Magazine
Views: 22168
Savjibhai Dholakiya, Surat Businessman (Diamond Merchant) speaks in Vibrant 2015
Views: 51344
IJ Jewellers Choice Design Awards 2013 - NDTV Video
Views: 53703
Member of:
Supporter of: