Surat firm to lose 250cr due to default by HK diamond co

SURAT: A Diamond Trading Company (DTC) sightholder in the city stands to lose Rs 250 crore because of payment default by a Hong Kong-based diamond jewellery company.It is that time of the year when diamantaires remain busy catering to domestic and overseas demand for Diwali and Christmas seasons. However, the news of the diamond company having gone bankrupt and unable to make Rs 350 crore payment for diamond consignments spread like wildfire on Thursday.Apart from the DTC sightholder company, there are 25 small and medium firms in Surat and Mumbai which may lose crores of rupees in this.Sources close to the company informed that the chairman rushed to Mumbai on Friday and organized a meeting with other creditors from Mumbai, who may lose money to the Hong Kong firm. The company has also sent its finance department officials to Hong Kong to investigate the issue.The financial condition of at least two other firms in Hong Kong and a firm in Bangkok is also fluid.Indian diamantaires from Surat and Mumbai, who supply polished diamonds to these firms, have started making frantic inquiries with their buyers in Hong Kong.Talking to TOI over phone from Hong Kong, Niraj Patel, a diamond merchant, said, "Many Indian diamantaires stand to lose crores of rupees because of the Hong Kong firm that has gone bankrupt. This company is yet to file for bankruptcy in a court. The situation is serious for diamond companies in Surat and Mumbai."