India Cracks Down on Bankrupt Diamantaires

RAPAPORT… Indian industry bodies are stepping up measures to prevent owners of bankrupt diamond
companies from starting a new business before clearing their debts.


The country’s Trade
Disciplinary Committee (TDC) could ban such new firms from
carrying out business on the premises of member organizations, it said in a notice December 21.

That would effectively
prevent them from operating within the Bharat Diamond Bourse (BDB) in Mumbai,
as well as any locations run by the Gem & Jewellery Export Promotion
Council (GJEPC) and the Mumbai Diamond Merchants’ Association (MDMA). The restriction would remain in effect for two years after the bankruptcy or insolvency
is settled, the three groups said in the joint statement.


The BDB, the GJEPC
and the MDMA recently established the committee to help prevent unethical behavior and handle disputes between members of the
organizations.



Image: Bharat Diamond Bourse. (Rapaport News)