Maha Company defaults on IDBI Bank loan of 6,710 crs – The New Indian Express

Through Express news service

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

It will be the diamond industry entity’s second biggest flaw after the Rs 14,000 crore GNP scam by Mehul Choksi and Nirav Modi which caused major embarrassment for the central government. Reports claimed that the unpaid amount also includes a foreign currency component of over $ 161,000, or approximately Rs 1.20 cr.

This is not the first time the business has defaulted on a loan. A household name in the diamond industry, the company’s financial troubles began in 2017. Earlier in 2018, the company defaulted on a Rs 468 crore loan from a consortium of banks led by Bank of India (BOI). They had tied around 27 properties with those of the Bharat Diamond Bourse in the Bandra Kurla complex in Mumbai.

IDBI bank cannot be immediately contacted to comment on the amount of the default, but sources have claimed that the bank has taken legal action to recover the outstanding amount. Sanghavi Exports is headquartered in the Bandra Kurla complex and has 4 associated companies: 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.

Dorothy H. Lewis