Diamantaire group Sanghavi Exports defaults on IDBI Bank's loans worth Rs 16.72 crore

Banking circles describe it as the "second biggest" default of its kind notched by a diamond industry entity after the infamous Punjab National Bank scam of around Rs 14,000 crore involving Mehul Choksi and Nirav Modi - erupted in early 2018, shaking the country's banking industry.

Mumbai: In another stunner, a prominent diamantaire has allegedly defaulted repaying loans worth Rs 16.72 crore to the government-backed private sector IDBI Bank Ltd, Mumbai, official sources said.

The outstanding amount also comprises a significant foreign currency component of more than $161,000, or roughly Rs 1.20 crore.

"It has been brought to the notice of IDBI Bank that a news article is in circulation stating that a default of Rs 6,710 crore has been made by a Diamantaire group to IDBI Bank. The news item further mentioned the name of M/s Sanghavi Exports International Pvt. Ltd., which is a Non-Performing Account (NPA) with the Bank. The Bank hereby advises that the news item contains certain factual inaccuracies," the lender informed the stock exchanges.