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.