Surat: Surat’s diamond industry is struggling with a surge in fraud and defaults, with estimated losses reaching Rs. 300 crore over the past three years. A prolonged slowdown in the industry has led many traders to shift to cash transactions.
Recently, a complaint was lodged at Kapodara police station by Rohit Kachadia of Shiv Gems against five including a diamond trader Kirit Fridolia, Haviya Gems’ Pankajbhai alias Pasa Bhai, Parasmani’s Mukesh Soni, originally from Mumbai, and D.N.D. Jewellers’ Vipul Jetani and one Gautam Shivdas Vaagh. The alleged fraud amounts to Rs. 1.76 crore.
Sources confirm that similar frauds were previously conducted under the name of Apexa Jewellers. Complaints have also emerged in Navsari and Mumbai against the same group.
According to estimates, numerous gangs have been involved in fraud cases ranging from Rs. 1 lakh to Rs. 150 crore, leading to a cumulative loss of Rs. 300 crore in the past three years. Around 200 traders have defaulted on payments, impacting the industry’s financial stability.
The Surat Diamond Association has received 24 official complaints, while the police have registered a staggering 186 cases related to such activities. Authorities are now working to trace the culprits and curb further financial damage to the industry.
Modus operandi:
The modus operandi of the fraudsters is that they initially purchase diamonds and behave like normal traders. However, after a few transactions, they disappear. After some time, they re-enter the industry under a new name. According to sources, these are just small players; the big players operate through them.
