Vallabh Lakhani might have resigned as Surat Diamond Bourse Faces Legal Turmoil

Surat : The Surat diamond industry speculate that Vallabh Lakhani’s resignation as chairman of the Surat Diamond Bourse (SDB) may be linked to the recent directive from the Surat Commercial Court. The court’s mandate, requiring the SDB management to furnish an irrevocable bank guarantee of Rs 125 crore within four weeks, adds another layer of complexity to the already troubled situation surrounding the world’s largest office building dedicated to the diamond trade.

The world’s largest office building, the Surat Diamond Bourse (SDB), finds itself entangled in legal turmoil following a recent directive from the Surat Commercial Court. Speculation mounts regarding the resignation of Vallabh Lakhani, the chairman of SDB, in light of the court’s order mandating the furnishing of an irrevocable bank guarantee of Rs 125 crore within a stringent four-week timeframe.

The legal imbroglio stems from a petition filed under Section 9 of the Arbitration Act by Ahmedabad-based PSP Projects Limited, the construction company responsible for erecting the SDB building. PSP Projects seeks to recover outstanding dues amounting to approximately Rs 538 crore, with a particular focus on a 2.5% retention deposit, totaling Rs 42 crore, that remains unpaid by the SDB following the issuance of the project completion certificate. This development underscores the financial strain facing the SDB, compounded by the impending expiration of the construction liability period within six months of 2024.

Represented by Supreme Court Senior Advocate Meenakshi Arora and High Court Advocate Bhagirath Patel, PSP Projects emphasizes its commitment to pursuing rightful claims through legal channels. PS Patel, Chairman and Managing Director of PSP Projects, underscores the company’s unwavering dedication to its reputation and accountability to shareholders. He emphasizes the reliance on robust evidence and trust in the judicial system to deliver a fair resolution amidst the ongoing legal proceedings.

This latest twist adds to the existing financial woes plaguing the SDB, casting further uncertainty over its future. The outcome of the arbitration proceedings and the subsequent fate of the bank guarantee remain pivotal aspects that will be closely monitored in the weeks ahead, as stakeholders anxiously await resolution amidst the backdrop of legal complexities.