Diamonds sold without invoice, KP certification are illegal : Surat court.

Surat : Surat’s glittering trade of diamonds no longer runs on faith and trust. There are few black sheep who have tarnished the image of the world’s largest diamond cutting and polishing centre in Surat.

In one such case, the district and sessions court, while announcing the final verdict in the cheque bounce case, observed  “This is not a grocery business. Diamonds sold without proper invoicing and Kimberley Process (KP) certification is totally illegal”.

According to the case details, a diamond dealer identified as Raichand Patel had sold polished diamonds valued at Rs 38 lakh to the proprietor of Tanmay Creations, Paresh Savaliya in 2014. Raichand was given post-dated cheques by the buyer of the diamonds.

Much to the surprise of the diamond dealer, the cheques issued by Tanmay Creations got bounced due to the insufficient balance in the bank account of the firm. However, the diamond dealer, Raichand Patel, lodged a case of cheque bounce against Tanmay Creations and his proprietor.

The district and sessions court observed that the diamonds were exchanged without the exchange of proper invoice and KP certificate. The victim sold the diamonds purely on the basis of trust and faith that his payment will be released by the buyer on time.

Ashwin Jogadiya, senior advocate who appeared on behalf of Tanmay Creations told TBT, “Any diamonds sold without KP certificates falls under the category of ‘blood diamonds’. The KPCS, which is the diamond industry watchdog, ensures that the diamonds have come from the conflict-free zones.”

Jogadiya added, “The complainant had no evidence whatsoever to establish his claim that he had sold the diamond parcel valued at Rs 38 lakh to Tanmay Creation. There was no KP certificate, nor the diamond dealer was in possession of invoice regarding the same. However, the court accused was released by the court”

It must be noted that crores of rupees worth of diamond dealings are done through the traditional ‘chitthi’ system where both the buyers and sellers agree to enter into the dealing. The ‘chitthi’ or plain paper chit is scribbled with the carat weight, number of pieces, purity of diamonds and the payment term. All these business dealing are done purely on faith and trust between the two parties, operating in the market for a long time.

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