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Namdeb Holdings, a 50/50 joint venture between the Namibian government and De Beers is not selling Daberas, Sendelingsdrift and Southern Coastal mines in the southern African country. It had been alleged that Namdeb was planning to close and offload...

Today

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08 april 2019

Lucapa’s Wetherall on the past, present and the future

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India’s gem and jewellery industry expects the government will consider its demand for lower import duty on raw materials

A go-getter at heart, with an attitude to match, Pramod Kumar Agrawal, Chairman of the Gem & Jewellery Export Promotion Council (GJEPC) of India is a man in a hurry. He has not left any stone unturned to bring back the Indian gem & jewellery...

25 march 2019

TDC warns entities declaring bankruptcy and restarting business without discharging liabilities

17 january 2019
gjepc_logo_news.pngThe Trade Disciplinary Committee (TDC) set up jointly by The Gem & Jewellery Export Promotion Council (GJEPC), the Bharat Diamond Bourse (BDB) and the Mumbai Diamond Manufacturers Association (MDMA), has issued a circular for members of the respective organisations intimating them that action will be taken against entities which have declared bankruptcy/insolvency, and continue to conduct business through another entity, without discharging  their liabilities, says a report in gjepc.org.
The actions include preventing such companies/entities/individuals from doing business from the premises of any of the trade bodies, which include the Bharat Diamond Bourse Complex, and all locations of the GJEPC and the MDMA. The actions proposed have been formulated under Sections 12 and 13 of the guidelines approved and passed by the TDC and the three bodies which set it up.
Clause 12 reads: “In the event any company/entity/individual has declared bankruptcy as per the market practice and its shareholders, partners, directors, and/or officers start business separately without discharging its liability then TDC shall be entitled to take action against such company/entity/individual as it deems fit including restricting it from carrying on business from the premises of any of the trade body as being part of the TDC.”
Cause 13 reads: “In the event of any company/entity/individual being declared bankrupt as per market practice and continues to carry on trade in the industry pursuant thereto with any other individual or entity or through dummy from the trade and the same is brought to the notice of the TDC, then TDC shall be entitled to initiate action not only against the Company/Entity/Individual declared bankrupt but also the person/company who supports or with whom the business is carried out or is associated with.”
The report adds that the circular is for the information of all members and serves as a warning to those who have declared bankruptcy/insolvency to desist from carrying out any new business without first discharging all their liabilities.
“The Trade Disciplinary Committee was set up two years ago to ensure that ethical and moral standards are maintained within the trade,” explains Sanjay Kothari, Convenor of the TDC. “Over the last six months, we have seen a few companies declaring bankruptcy and going on to conduct business without discharging their liabilities. In such cases, a portion of their dues may be settled, but other claims are left unsettled and trade members suffer losses as a result. What is more, the same persons involved in declaring themselves bankrupt go on to do business again, without paying all their dues. This puts trade members at further risk.”
Kothari adds: “We have asked members not only to desist from dealing with such entities but also to come forward to inform us if they come across such instances or are at the receiving end of such practices. As an industry, it is imperative that we stamp out any malpractices and maintain transparency and the highest ethical standards.”

Aruna Gaitonde, Editor in Chief of the Asian Bureau, Rough & Polished