Policies & IssuesMay 06, 2024
Rolex Files Objection to Hallmark’s New Trademark ApplicationThe Swiss watchmaker said the company’s plans to use a new version of the Hallmark crown on jewelry would confuse consumers.
SourcingAug 02, 2018
Lack of Financing a ‘Crisis of Sorts’ in India, GJEPC Says
Gem and jewelry companies there are having a difficult time securing loans in the wake of the Nirav Modi scandal.
Mumbai, India—Leaders of India’s Gem & Jewellery Export Promotion Council said recently that the trade there is witnessing a lending “crisis” in the wake of billion-dollar bank fraud scandal allegedly perpetrated by Nirav Modi.
On Feb. 13, India’s Central Bureau of Investigation (CBI) registered a case against Modi, his brother Neeshal and his uncle, Gitanjali Managing Director Mehul Choksi, accusing the trio of colluding with employees of Punjab National Bank, the second largest state-run bank in the country, to take out $1.8 billion in loans that were not properly approved or backed and never repaid.
Issued through Letters of Understanding, or LoUs, employees working on the inside allegedly helped Modi and his co-conspirators secure the loans over a seven-year period with little or no collateral and without entering the transactions into the bank’s database.
The CBI has not said what Modi and the others did with the money, but the agency has been on the hunt for the billionaire diamantaire since he left India in January, and has seized his assets and shut down his diamond factories.
Since news of the scandal broke, GJEPC said banks and other financial institutions have tightened lending to Indian firms and are insisting on securing more collateral before making loans, echoing what a longtime industry banker told National Jeweler back in February: that the scheme would have a ripple effect throughout an industry already struggling to secure financing.
The banker said the Modi fraud case “is another stamp, another demerit that says, ‘Just stay away from [the jewelry industry]. Don’t go anywhere near it. It’s not reliable. Why would you want to do business with these people?’”
Overall, the GJEPC estimates that lending to the gem and jewelry trade is down by at least 10 percent so far this year, which has led to a double-digit decline in exports.
India’s gem and jewelry exports for April to June 2018 have totaled $10.1 billion compared with $11.1 billion in the same period last year, a 9 percent decline. The GJEPC said it expects exports for fiscal year 2018-2019 to be down 10 percent, a “drastic drop.”
GJEPC Chairman Pramod Agrawal recently issued a public plea for the government to intervene and aid an “ailing industry,” noting the GJPEC has taken steps like the MyKYC bank initiative to mitigate risk and increase transparency in the sector.
“The council is taking all efforts to self-regulate and
instill confidence among key stakeholders through a slew of reforms. However, the industry is witnessing a crisis of sorts as the banks have curtailed lending to the traders and are demanding collateral security and extensive documentation,” Agrawal said. “We are hoping the government will intervene and bring some relief to the ailing industry that contributes 7 percent to the (Indian) GDP.”
He called for the implementation for the jewelry trade of an interest subvention scheme, which the government has instituted in the past for farmers affected by natural disasters.
He called for the implementation for the jewelry trade of an interest subvention scheme, which the government has instituted in the past for farmers affected by natural disasters.
More on Sourcing
The Latest
EditorsMay 06, 2024
Q&A: 8 Questions With Anglo American’s Benny Oeyen The executive talked about the importance of self-purchasers and how fuel cell electric vehicles are going to fuel demand for platinum.
MajorsMay 06, 2024
Malabar Gold & Diamonds Opens 4th U.S. ShowroomThe Indian jeweler’s new store in Naperville, Illinois marks its 350th location, part of its ongoing global expansion plans.
Brought to you by
From Registration to Return: 10 Tips to Protect You Before, During and After a TradeshowTradeshow risks are real. Get tips to protect yourself before, during and after and gain safety and security awareness for your business.
Events & AwardsMay 06, 2024
Ben Bridge Jeweler Accepting Applications for Lonia Tate ScholarshipIt will award a graduating high school student with about $10,000 toward a GIA diploma and an internship with the Seattle-based jeweler.
Weekly QuizMay 02, 2024
This Week’s QuizTest your jewelry news knowledge by answering these seven questions.
CrimeMay 03, 2024
Second Suspect Arrested in Murder of Colorado JewelerWheat Ridge, Colorado police took a 50-year-old man into custody Wednesday following a two-month search.
CollectionsMay 03, 2024
A Sneak Peek Into PGI’s Couture Platinum Spotlight ProgramPGI partnered with four new and seven returning designers for its annual platinum capsule collection.
Brought to you by
Rio’s Reimagined Podcast: For the Love of JewelersMeet Ben Claus—grand prize winner of For the Love of Jewelers 2023 Fall Design Challenge.
MajorsMay 03, 2024
Kristie Nicolosi Joins WJA Board AgainNicolosi, president and CEO of The Kingswood Company, previously sat on WJA’s board from 2011 to 2018.
CollectionsMay 03, 2024
Piece of the Week: A “Bit of LUV” for the DerbyKarina Brez’s race-ready piece is a sophisticated nod to the horse-rider relationship.
CrimeMay 02, 2024
4 Indicted in Burglary Ring Targeting Indian, South Asian FamiliesThe men are allegedly responsible for stealing millions in jewelry and other valuables in 43 burglaries in 25 towns across Massachusetts.
CollectionsMay 02, 2024
Foundrae Launches ‘Horizon’ Collection“Horizon” invites individuals to explore the limitless possibilities that lie ahead, said the brand.
FinancialsMay 02, 2024
Pandora Raises Guidance After Strong Q1The jeweler credits its recent “Be Love” campaign and ongoing brand revamp for its 17 percent jump in sales.
IndependentsMay 02, 2024
Oklahoma Jeweler Glenn Lewis Dies at 68The co-founder of Lewis Jewelers was also the longtime mayor of the city of Moore.
AuctionsMay 02, 2024
Vintage Baume & Mercier With Ties to Elvis Sells for $7K Elvis Presley gifted this circa 1967 gold and diamond watch to Dodie Marshall, his co-star in “Easy Come, Easy Go.”
SurveysMay 01, 2024
Consumer Confidence Falls in AprilConcerns about rising prices, politics, and global conflicts continue to dampen consumer outlook.
TrendsMay 01, 2024
Amanda’s Style File: All Eyes on EmeraldsMay’s birthstone is beloved for its rich green hue and its versatility.
CrimeMay 01, 2024
Grand Jury to Hear Case Against Jeweler Charged in Fatal Shove Following IJO ShowLast month in Dallas, David Walton pushed another jeweler, David Ettinger, who later died.
CollectionsApr 30, 2024
12 Otherworldly Pieces From Tiffany & Co.’s 2024 Blue BookThe “Tiffany Céleste” collection reimagines designer Jean Schlumberger’s interpretations of the universe.
MajorsApr 30, 2024
Zales Celebrates 100 Years With New CampaignThe brand also created a 100-carat lab-grown diamond necklace in honor of its centennial.
MajorsApr 30, 2024
Platinum Guild International Appoints New CEOTim Schlick has been promoted from his previous position as COO.
Events & AwardsApr 30, 2024
Canadian Jewellers Association Brings Back the Summit It’s the second year for the event, slated to take place in October in Toronto.
Recorded WebinarsApr 29, 2024
Watch: Diamond Identification and Evaluation - How to Protect your BusinessSupplier Spotlight Sponsored by GIA
CollectionsApr 29, 2024
Simone I. Smith Mixes Denim and Diamonds in New Collection“SIS x MISA Denim and Diamonds” is a collaboration between the designer and celebrity stylist Misa Hylton.
IndependentsApr 29, 2024
Venus Jewelers Relocating After 45 YearsThe retailer is moving to a newly designed space in the same shopping center.
SurveysApr 29, 2024
Mother’s Day Jewelry Spending to Reach $7B, Says NRFGifts that are unique and thoughtful are top of mind this year, according to the annual survey.
