National
Nirav Modi fraud: Jewellers apprehend impact on credit flow to industry
Kolkata, Feb 16 (IANS) Jewellery traders and exporters are apprehending that “ripple effects” of the $1.8 billion fraud involving billionaire diamond trader Nirav Modi’s companies could make lenders more cautious and impact credit flow to the industry to some extent, officials said here on Friday.
However, they also said that in the wake of the fraud, the entire gems and jewellery industry should not be blamed or branded as “risky” industry.
The Punjab National Bank had admitted to unearthing a fraud of Rs 11,515 crore involving Modi’s companies and certain other accounts with the bank’s flagship branch (Brady House Branch) in Mumbai and its second largest lending window in India.
“Some ripple effects are bound to happen and it (the fraud) will have some psychological impact on the mind of loan advancers. Whenever a banker is financing someone, he will be more cautious to check out whether there is any possibility of fraud or not. This could impact credit flow to the industry or lead to delay in extending advances,” Gem and Jewellery Export Promotion Council (GJEPC) Regional Chairman (Eastern Region) Prakash Chandra Pincha said.
He, however, said the entire industry cannot be blamed for a single person’s act.
“I do not think the exports of gem and jewellery and the industry as a whole will be impacted by this fraud,” he said, adding that the council has been a whistle-blower and had cautioned the government over “round tripping” issue.
The council does not hesitate to inform the government if any policies or schemes are misused, Pincha said on the sidelines of inauguration of “Sonar Sansar”, a four-day exhibition of gems and Jewellery.
GJEPC’s former Vice Chairman and India Bullion and Jewellery Association West Bengal President Pankaj Parekh said not only bankers, insurance companies could now also turn cautious in extending their services to jewellery exporters.
“Following the fraud, the bank may ask for more collateral before providing credit to jewellers or jewellery exporters. Due to this fraud, the entire industry might be branded as a risky industry. This should not be done. Unfortunately, our past experience has been like that particularly after the incident of Winsome Diamonds default,” Parekh said.
After the implementation of Goods and Services Tax (GST), the industry has been faced with “refund problems”, which is resulting in “dearth of working capital”, Pincha said.
“Post exports, we are to get the refund but that is not coming. However, the payments of refunds have been started right now. But it is after seven months and a lot of working capital of jewellers has been blocked due to delay in payments of GST refund. It is a burning problem,” he said.
Parekh also said exporters started receiving parts of Central GST (CGST) refund but the State GST (SGST) refund payments have not been started.
“With the delay in payment of refund, the profitability has reduced and the exporters’ confidence was also impacted,” he said, adding that the impact of the Nirav Modi fraud case and crunch in working capital due to delay in GST refunds would act like a “double whammy” for the industry.
–IANS
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Lucknow: Vishal Singh, a renowned social worker from Lucknow, also known as Foodman, has once again made India proud. He was honored by the Happy Hands Gloves Cooperative Limited Company in Korathai, Thailand, for his work with the Hunger Free World Mission.
The Hunger Free World Mission’s meeting was held in Korathai, Thailand, under Vishal Singh’s leadership. Representatives from several countries, including Mr. Raja Dwivedi (Managing Director of Happy Hands Gloves Limited), Thailand Coordinator Mr. Raja Mishra, and member Mr. Varun Singh, attended the event.
Under Vishal Singh’s leadership, the attendees took a pledge to work together toward creating a hunger-free world.
Speaking on the occasion, Vishal Singh explained that the main goal of the Hunger Free World Mission is social participation. He said the mission is not just about feeding people but also about meeting other basic needs of those who are struggling. The mission focuses on helping families of terminally ill patients in hospitals by providing food and shelter. It also works to fulfill essential needs like education, jobs, and care for the elderly.
For the last 16 years, the Vijay Sri Foundation has been providing free services, benefiting thousands of people. Vishal Singh highlighted that the mission aims to gain global recognition like other organizations such as WHO, WWF, and Red Cross, which work for social causes.
During this meeting, Vishal Singh was appointed as the Chairman of the Hunger Free World Mission by representatives from various countries. They also discussed holding regular meetings in different countries to push the mission forward.
Business tycoon Dr. Abhishek Verma has also supported this humanitarian mission, vowing to promote the idea of “Seva Parmo Dharma” (Service is the highest duty) worldwide. Vishal Singh praised him, stating that people like Dr .Abhishek Verma inspire others to work for the betterment of society.
Recently, Romania’s Ambassador, Mr . Daniela Sezonov Ţane, invited Vishal Singh to the Romanian Embassy in Delhi, where they discussed the mission in detail. Impressed by his humanitarian work, she honored Vishal Singh and invited him to Romania to take the mission forward .
Food man Vishal Singh has been serving the people of India for the past 16 years. Through the Vijay Sri Foundation, he provides free meals to cancer patients & their families ,shelter, and education for women & children along with running free old-age homes in Lucknow.
In addition to his humanitarian work, Vishal Singh also addresses issues like crime and corruption through his role as Chairman of Seva Path Media and Managing Director of Vijay Sri Foundation.
During the COVID-19 pandemic, Vishal Singh and his team worked tirelessly to provide food and help to the needy, including starving children, elderly citizens, and pregnant women. Despite contracting the virus himself, he continued to assist others after his recovery. He even created a life-saving oxygen regulator using household items, which was praised by doctors both in India and abroad.
In his address at the meeting, Vishal Singh spoke about his mission to create a hunger-free world. He pointed out that India’s large population, along with issues like unemployment and poverty, has caused the country to fall on the Hunger Index. He urged people to contribute just one handful of grains daily to help create a hunger-free world.
He concluded by saying that through social participation, we can empower the people around us, meet their basic needs, and work together to build a stronger, more prosperous, and developed society.
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