STOCK MARKET BSE NSE

Maharashtra firm defaults on IDBI Bank’s Rs 6,710-crore loan

Mumbai-based diamantaire group Sanghavi  Exports International Pvt Limited has reportedly defaulted on Rs 6,710 crore worth loans issued by IDBI Bank, sources from the bank said. 

Published: 21st December 2021 10:55 AM  |   Last Updated: 21st December 2021 06:41 PM   |  A+A-

By Express News Service

NEW DELHI:  Mumbai-based diamantaire group Sanghavi  Exports International Pvt Limited has reportedly defaulted on Rs 6,710 crore worth loans issued by IDBI Bank, sources from the bank said. According to the sources, the bank has already sent notices to its directors and management. 

This will be the second largest default from the diamond industry entity after the PNB scam of Rs 14,000 crore by Mehul Choksi and Nirav Modi which caused major embarrassment for the central government. Reports claimed that the outstanding amount also comprises foreign currency component of more than $161,000, or roughly Rs 1.20 crore.

This is not the first time that the company has defaulted on a loan. A noted name in the diamond industry, the financial trouble for the company started in 2017. Earlier in 2018, the company had defaulted on loan of Rs 468 crore, taken by a consortium of banks led by Bank of India (BOI). They had attached about 27 properties along with those in the Bharat Diamond Bourse in Bandra Kurla Complex in Mumbai.

Sanghavi Exports has headquarters in Bandra Kurla Complex, and has 4 associate firms: Sanghavi Diamonds Manufacturing, Sanghavi Jewelry Manufacturing, Sanghavi Star Retail, and Royal Estate Holding (India). The company has two factories in Surat and an office in Mumbai.

Meanwhile, IDBI has clarified that while it has initiated action against the company to recover the loans, the exposure is much less than reported.

“IDBI Bank has exposure to M/s Sanghavi Exports International Pvt. Ltd. (which is NPA), but the current Principal Outstanding is only Rs. 16.72 crore (Rupees Sixteen Crore and Seventy Two Lakh only) and the account is fully provided. IDBI Bank has initiated requisite actions to recover its outstanding dues,” the bank said in a statement filed with the stock exchanges.



Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp