Diamond Trader Defaults in Surat

Surat: Dozens of small traders and manufacturers in Mahidhapura diamond market have suffered a massive loss after a diamond trader defaulted on payments to the tune of Rs 7 crore to them, reports The Times of India.

This is first default case registered in the diamond market of the city after demonetization, market sources said, adding that more such cases are likely to come up as traders and manufacturers are still facing a severe liquidity crisis.

Market sources said the defaulter was into trading of polished diamonds at Mahidhapura diamond market. He hails from Bhavnagar and was residing in a housing society at Katargam. The defaulter had started as a polished diamond trader at Bhavnagar diamond market before shifting to Surat a few years ago. His creditors went to his house but found it locked last week. The creditors informed Surat Diamond Association (SDA) office-bearers about the defaulter and that his whereabouts remain unknown.

"We have received information on the default by a trader in Mahidhapura for Rs 7 crore. We are trying to establish contact with our counterparts in Bhavnagar diamond industry to know more about the defaulter. An amicable solution will be found once the defaulter's whereabouts is known," said an office-bearer of SDA.

Meanwhile, the diamond industry is all set to face another set of problems. Angadias have refused to deliver cash from one destination to other from February 15 following an order of Central Board of Direct Taxes (CBDT) which has asked them to stop delivering cash.

"The angadias will only deliver valuable jewellery, diamonds and gem stones from one destination to other. No cash will be delivered after February 15 to avoid unnecessary action by the CBDT," said an angadia firm owner in Mahidharpura.

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