Surat diamond company Maruti Impex Halts Operations

Surat : Maruti Impex, a Surat-based diamond company, that invited Prime Minister Narendra Modi to a mass marriage ceremony in Bhavnagar in November 2022 for 552 fatherless daughters titled ‘Papa ni Pari (father’s princess)  has announced temporary closure of its operations for the next four months. 

Following the announcement, about 15,000 employees working with Maruti Impex in Surat, Bhavnagar, Amreli, and Junagadh have been rendered jobless. 

The Surat Labour Court imposed a Rs 20,000 fine on the owners of Maruti Impex in less than three months in two separate cases filed by the Diamond Workers’ Union Gujarat (DWUG) for violations of the Minimum Wage Act, 1948 in March 2023.

Following the representation of the diamond workers at Maruti Impex, DWUG filed cases in Surat’s Labour Court against Maruti Impex’s owner, Suresh Kumar Lakhani, for violating the Minimum Wage Act of 1948. The cases were filed under Gujarat Minimum Wage Rules, 1961, Sections 26(d), 26(2), 26(B)(1), and 22, 21(4).

According to the complaint, Maruti Impex employs over 1,000 diamond workers at its plush Katargam factory. The company violated the Minimum Wage Act of 1948 and the Gujarat Minimum Wage Rules of 1961 by failing to set minimum wage rates.

For violating the Minimum Wage Act of 1948, Justice Naresh G Shah of the Labour Court in Surat ordered the owner of Maruti Impex to deposit Rs 20,000. Suresh Kumar Lakhani, the owner of Maruti Impex, admitted to violating the minimum wage law and expressed his willingness to pay the penalty amount.

According to Bhavesh Tank, vice-president of DWUG, “On the one hand, the owner of Maruti Impex invites honourable Prime Minister Narendra Modi to the mass marriage event in Bhavanagar, while on the other hand, he exploits diamond workers by violating the Minimum Wage Act of 1948.” DWUG filed a case against Maruti Impex in order to set a precedent in the diamond industry.”

With uncertainty about the resumption of operations, the company has advised its staff to seek alternative employment. Salaries for employees were cleared up to the Diwali break.

Known for polishing natural diamonds, Maruti Impex operates over 100 units, comprising both directly owned and outsourced facilities. The decision to halt operations follows the deteriorating health of its founder, Suresh Lakhani, who suffered a brain stroke three months ago and remains in a coma. Lakhani, the driving force of the company, managed everything from procurement to sales.

In his absence, family members and staff handled operations until Diwali. However, due to unfavourable market conditions and the absence of Lakhani’s leadership, the management has decided to suspend activities.