Jewellery industry under scanner after Nirav Modi's stunt

Kolkata: Jewellery exporters are apprehending that the multi-crore fraud involving diamond trader Nirav Modi's companies, may have an impact on the industry.

Gem and Jewellery Export Promotion Council (GJEPC) Regional Chairman (Eastern Region) Prakash Chandra Pincha said some ripple effects may happen on Jewellery industries and the fraud may also determine the mind of the loan advancers.

"Whenever bankers are financing someone, they will be more cautious to check out whether there is any possibility of fraud. This could impact credit flow to the industry or make delay in extending advances," Pincha told reporters at the side line of the inauguration of "Sonar Sansar", a four day exhibition of gems and jewellery at Netaji Indoor Stadium on Friday.

He, however, maintained that the entire industry should not be blamed for a single person. He also opined that the incident will not have a major effect on the gems and jewellery industry as a whole.

The council will act as a whistle blower and it will not hesitate to inform the government if schemes are misused, Pincha maintained.

The industry was hit after the implementation of Goods and Services tax (GST) and it had been facing the "refund problems" resulting in the dearth of working capital, Pincha said.

GJEPC's former Vice-Chairman Pankaj Parekh said not only bankers, insurance companies could possibly be cautious in extending their services to jewellery exporters after the

fraud incident.

Following the fraud, the bank may ask more collateral before providing credit to jewellers or jewellery exporters. But the industry must not be branded as risky due to this incident.

"Sonar Sansar" is the largest Jewellery show of Eastern India which was inaugurated on Friday at Netaji Indoor Stadium by veteran actor Soumitra Chatterjee.

The exhibition would showcase various products related to Gems and Jewellery industry which is poised to attract the jewellery connoisseurs of Kolkata and provide them with a plethora of

jewellery options.