Scores of diamond manufacturers and traders in India are grappling with frozen bank accounts, as financial institutions take the unexpected step of suspending operations. While the exact cause for this action remains elusive, reports suggest a potential link to a police investigation into cyber-fraud.
The banks, without clear explanation, have halted transactions for multiple businesses in the jewelry sector, particularly in Surat, a city renowned for its diamond polishing prowess. Law enforcement authorities from the states of Telangana and Kerala issued directives to suspend 27 accounts belonging to jewelry enterprises.
Dinesh Navadiya, the Director of the Gems and Jewellery Export Promotion Council (GJEPC), expressed deep concern over the situation. He highlighted that not only were the accounts of jewelry firms seized, but all related accounts were frozen as well. This sweeping move has caused significant disruptions for the affected firms, rendering them unable to perform financial transactions or access funds.
According to Navadiya, the banks have not provided any explanation for this sudden freezing of accounts, leaving the businesses and industry stakeholders puzzled and anxious about the implications.
Among the impacted entities are several natural diamond manufacturers with substantial annual turnovers exceeding $1.2 million (₹10 crore). Frustrated by the lack of clarity, these companies are planning to address the matter directly with law enforcement agencies.
The developments highlight the vulnerability of businesses in the diamond and jewelry sector to unexpected financial disruptions, prompting calls for transparency and resolution to alleviate the challenges faced by the affected firms.
