Surat Diamond Bourse Management in Damage Control After Kiran Gems Exodus

Surat : The Surat Diamond Bourse (SDB) is facing a public relations crisis following the sensational departure of Kiran Gems, the industry’s leading player, back to its Mumbai base. In a bid to protect the image of the Bourse and its chairman, Vallabhbhai Lakhani, the SDB management committee has issued a controversial statement justifying Kiran Gems’ decision.

Dinesh Navadia, the media convener of the SDB, circulated an official letter and video claiming the committee unanimously advised Kiran Gems to resume operations from their Mumbai office at the Bharat Diamond Bourse (BDB) on January 18. The statement cites the lack of other major diamond companies operating from the SDB as the reason for this unusual recommendation.

However, this explanation has been met with skepticism from industry insiders. Critics point out that around 80% of the SDB offices are expected to be operational by May 2024, casting doubt on the urgency of Kiran Gems’ return to Mumbai.

Navadia himself acknowledged Kiran Gems’ commitment to the SDB, stating, “Vallabh Lakhani kept his commitment and shifted his entire operations from Mumbai to Surat.” Yet, he justified the decision by adding, “However, the other big diamond companies are yet to start operations from the bourse.”

Industry sources further complicate the narrative, revealing that Kiran Gems already maintained a well-equipped office at the BDB, suggesting a pre-existing plan for a dual operation. They claim that even after the initial shift to Surat, only a small portion of the company’s staff actually operated from the SDB, with the majority remaining in Mumbai offices.

“The operations at Kiran Gems in Mumbai never stopped,” stated a leading Mumbai-based industry leader, expressing unhappiness with Kiran Gems’ attempt to influence other diamond companies to abandon Mumbai for the SDB.

This entire episode raises questions about the transparency and decision-making process of the SDB management. The abrupt shift in stance regarding Kiran Gems’ operations and the lack of clarity surrounding their reasoning have damaged public confidence in the Bourse’s leadership.