In a letter to the Bombay Stock Exchange dated 8th April 2017, Winsome Diamonds and Jewellery Ltd, India’s leading diamond exporter, sought clarification on media reports titled ‘CBI Registers Six Cases Against Winsome.’
Winsome Diamonds explained to the Bombay Stock Exchange that they had learned via a press report that the CBI had registered six cases against the company and its subsidiaries, promoters and directors. Winsome explained that they had not yet been provided with a copy of the formal complaint from either the CBI or the banks concerned, and thus were unable to provide further clarification.
Winsome Diamonds, whose guarantors include Jatin Mehta, made it implicitly clear in their letter to the Bombay Stock Exchange that the company had been involved in no form of fraud or cheating. They had complied with all terms and conditions imposed by consortium banks in the sanctioning of loans. Winsome stipulated the default of foreign buyers as the cause of Winsome accounts becoming NPA, explaining that the current situation was caused by genuine business losses suffered by the company. Winsome explained that they had invited the consortium to join with them in filing law suits against 13 foreign distributers for Winsome (as they were termed in the KROLL report) had reneged on contracts, but so far the banks had declined.
Winsome Diamonds and Jewellery Ltd had, nonetheless, filed some 26 cases in Sharjar Federal Courts against defaulting debtors, and were granted judgments in their favour for sums in excess of some 1.2 billion US dollars, copies of which had been provided to the banking consortium and all relevant government agencies. It was thus established without doubt that whereas the Kroll Report alleged fraud on the part of Winsome, these allegations were largely based upon hearsay rather than having any basis in fact as borne out by the Court awards. Winsome pointed out in their communication that whilst they had requested a copy of the Kroll Report several times from the Enforcement Directorate, this request was not met.
Harshad Udani, Director of Winsome Diamonds and Jewellery Limited, closed his letter to the General Manager of the Bombay Stock Exchange by asserting that the Kroll Report was not only untrue, but had been created with malicious intentions. He stated on behalf of Winsome Diamonds that the company was making every effort to recover funds, but was being thwarted at every turn by third parties filing bogus complaints and making false accusations without details or proof, in direct contravention with rulings made by the United Arab Emirate Courts.