Surat Diamond Bourse in Legal Dispute Prior to PM Modi’s Inauguration

Surat: The grand inauguration of the world’s largest office building, the Surat Diamond Bourse (SDB), by PM Modi on December 17th, is overshadowed by a legal battle concerning unpaid dues.

Ahmedabad-based PSP Projects Limited, the construction company responsible for the mammoth project, has filed a case for the recovery of outstanding payments amounting to Rs 500 crore.

The Surat sessions court has issued a notice to the SDB management, demanding a bank guarantee of Rs 100 crore within a week. This development has cast a shadow on the celebratory mood surrounding the inauguration by Prime Minister Narendra Modi, raising questions about financial transparency and accountability.

The SDB management, however, has refuted the allegations. Laljibhai Patel, chairman of the SDB construction committee, claims that 98% of the construction costs have already been paid to PSP Projects and its owner, PS Patel. He further stated that the remaining 2% will be released upon the completion of pending civil works.

Patel also countered the company’s claim regarding losses incurred during the COVID-19 pandemic, which led to the construction’s temporary suspension. According to him, SDB fulfilled all financial obligations and even provided food and other support to the construction workers during the lockdown.

PSP Projects, known for its vision and techno-commercial capabilities, was awarded the contract to build the SDB, a complex spanning 66 lakh sq. ft. with a contract value of Rs 1575 crore. SDB Diamond Bourse, a non-profit organization responsible for the project’s development, is poised to become India’s second major diamond trade hub after Mumbai’s Bharat Diamond Bourse.

Despite its impressive size and potential impact on Surat’s diamond industry, the controversy surrounding unpaid dues has tarnished the SDB’s inauguration. The outcome of the legal battle will determine whether the project can truly stand as a symbol of India’s economic progress or remain a monument to unresolved financial disputes.