Indian Diamantaire Defaults on $7.5 Million
June 09, 16
(IDEX Online News) – More than a dozen diamond traders in Surat, Mumbai and Antwerp have lost ~$7.5 million following default by a Gujarati diamantaires in Antwerp, according to a report in The Times of India.
The defaulter apparently had an office at the Bharat Diamond Bourse (BDB) in Mumbai and was operating a business from Antwerp. Reports suggest that he purchased light-brown colored diamonds from traders in Surat and Mumbai, and then exported to Antwerp for future sale.
The defaulter purchased $4.5 million worth of stock from Surat, with the remainder bought from Mumbai. As the operator had been in business for several years, credit suppliers from Surat and Mumbai had allowed him 120 days credit.
"The diamond trader could not pay the outstanding dues to the traders in Surat and Mumbai as the traders in Antwerp did not pay for the stock they purchased,” said a member of the Surat Diamond Association. “However, the defaulter disappeared from the market with the pending payments to the traders."
Since 2015, the diamond industry in Mumbai and Surat have suffered several defaults, with estimates that $450 million is still owed.