INDIA BUSINESS WORLD - JANUARY 16th - JANUARY 31st
- 2008
DTC REVOKES SUSPENSION OF 4 DIAMOND TRADERS
DTC, a De Beers group company, which supplies 40% of the rough diamonds to the global diamond industry, has restored the sightholding of four Indian diamond traders after a prolonged hearing on this issue last week in London.
The DTC sites of the four diamond traders who together account for 10% of the Rs 70,000 crore Indian diamond export market, were under suspension due to their suspected involvement in a legal issue in Belgium. Suresh Surana & Associates managing partner Suresh Surana, who represented the four sightholders before the DTC, said the company took this decision after it realised that these Indian companies were not party to a tax evasion case in Belgium, the reason that prompted DTC to suspend them.
K Girdharlal, C Mahendra and K P Sanghvi and Minestone are among the diamond traders whose sites were suspended and revoked. The suspension has stirred a furore among the diamond trading community in India as the fate of over 20,000 employees engaged in cutting and polishing diamond was in doubt after the suspension. All the four companies have confirmed that their suspension has been revoked.
The diamond industry heavily relies on supply of rough diamonds from DTC, a part of De Beers group. DTC supplies about 40 % of the rough diamonds in the world.
"I represented the sightholders with the DTC in London last week and we clarified to the DTC that none of the Indian sightholders or their directors and shareholders have been involved in the Belgium legal matter and supported that with the documentary evidence. DTC has adopted a very objective and open minded approach which has helped to resolve the matter. Hopefully, with this verdict, the Indian diamond industry is set to regain its momentum and continue its leadership," Dr Surana said.
In 2003 the DTC introduced the Best Practices Principles which have been followed by all sightholders. "The case that has been in question was in 1994 and we have proved to the DTC authorities that we were not involved in the alleged case," said a spokesperson from K Girdharlal said.
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