The story of jewelry exporter Winsome Group, which has defaulted over Rs. 6500 crore on loans from banks in India in recent years, is far from over.
According to Diamond World, in 2015, the group’s two companies – Winsome Diamonds and Forever Diamonds – reported a business loss of $1.23 billion to the Sharjah court, “which correlates to Rs. 7870 crore due to non-payment from 13 UAE-based entities”. The court ruled in favour of Winsome Diamonds and Forever Diamonds. Last year, the Enforcement Directorate (ED) sent a request for information to the UAE, “but it is yet to receive an official reply. In the absence of the official reply, the investigating agencies seem to have hit a dead end”.
According to the latest information gathered by Diamond World, “funds are drying up at company’s end” and the shareholders, who lost their investments, are still trying to figure out why it happened, whether by “the negligence of the directors or the callous attitude of the banks not to make any settlement with the Foreign Buyers or both”.
