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Exclusive | Former Gitanjali Gems MD claims Mehul Choksi sold overpriced and fake diamonds

Former MD Srivastava has alleged the company would even pass off fake diamonds as natural ones.

February 19, 2018 / 05:49 PM IST
1. Atlas Jewellery India | Return in December 2017: 44.51% | 2016: 23.74% | 2015: 20.66% | Atlas offers a wide range of choice in fashionable jewellery coupled with high standards of purity and service.

1. Atlas Jewellery India | Return in December 2017: 44.51% | 2016: 23.74% | 2015: 20.66% | Atlas offers a wide range of choice in fashionable jewellery coupled with high standards of purity and service.

After allegations that Mehul Choksi’s Gitanjali Gems forged letters of undertakings (LoU) issued by Punjab National Bank, a senior ex-employee has now  alleged the company would falsify the quality of its diamonds and even pass off fake diamonds as real ones.

According to the company's former Managing Director Santosh Srivastava, a huge chunk of diamonds sold by Choksi were lab produced with valuations nowhere near the price at which it was sold to customers.

“The diamonds were sold at a premium in the name of brand value, cuts and certifications that were given out. The certifications too were forged. A diamond that claimed to be of Grade A in a purchase made was actually Grade C,” Srivastava told Moneycontrol. He was head of the retail business at Gitanjali until 2013.

Srivastava’s allegations could give customers of Gitanjali sleepless nights. The premium charged for the rocks sold at Gitanjali were way too much according to Srivastava. “The diamonds that were passed as precious and rare and were actually lab produced coasted only 5%-10% of the cost it was sold at,” he said.