The Surat Diamond Bourse (SDB) is facing criticism for incentivizing its members to close their offices at the Bharat Diamond Bourse (BDB) in Mumbai. The newly constructed SDB, which took nearly four years and $355 million to build, is set to open this November after several delays. However, its call for SDB traders who also operate from BDB to shut down their Mumbai office has stirred up anger among diamond industry insiders, according to IDEX Online.
In a letter dated May 27, signed by the Managing Committee of SDB Diamond Bourse, the SDB offers benefits such as up to a year’s free maintenance and recognition as “Leading Members” to those who completely discontinue their business in Mumbai and establish operations exclusively at SDB. The letter urges members to take advantage of this scheme and start selling polished diamonds solely from SDB.
Mehul Shah, vice president of BDB, the world’s largest diamond bourse with 6,000 members since its establishment in 2010, voiced his disapproval of the initiative to IDEX Online, saying it was “not in good taste” and adding: “There are around 10,000 (diamond) offices all around Surat. They should focus first on people there to open an office at SDB rather than calling the people from Bombay. This is not the first time they have done this. Senior people spoke to them and told them this is not good for the interests of the industry. Do not divide the industry, do not divide the community.”
With an office complex consisting of nine 15-story towers, SDB is faced with the challenge of filling its vast space of 4,300 offices. Shah suggested that SDB’s latest move may be indicative of a lack of confidence, emphasizing that attracting individuals to shift their operations is not an easy task.
Dinesh Navadia, a member of SDB’s managing committee, clarified that the scheme is exclusively designed for SDB members and defended the decision to Times of India, stating: “We have decided to offer them some relaxation in maintenance. There is nothing wrong in our committee decision as we want business houses to take advantage of this offer and move.”
Surat has long been recognized as the global hub for diamond manufacturing, responsible for over 90% of the world’s gem handling. However, the diamond trade has primarily been centered in Mumbai, located five hours away. SDB aims to change this dynamic with its ambitious project, which will become the world’s largest office building, surpassing the size of the Pentagon. The official inauguration is expected to take place in December or January and will be attended by India’s Prime Minister Narendra Modi.
