Four years after Jatin Mehta of Winsome Diamonds and Jewellery duped banks of Rs 7,000 crore, lenders have now initiated corporate insolvency process against the firm. The Ahmedabad NCLT gave a green light to initiate bankruptcy on 13th February and Sunit Shah has been named the interim resolution professional.
Creditors have been asked to submit their claims by February 27. Under the insolvency process the board of Winsome Diamonds was suspended and the IRP vested with the powers of the board.
Winsome Diamonds had raised Rs 4617 crore from 14 different banks by 2012. The credit was given to three group companies, Winsome Diamond & Jewellers, Forever Precious Diamond and Jewellery and Suraj Diamonds. By 2013 these companies started defaulting on their loans and were soon declared wilful defaulter.
