Winsome Diamonds faces insolvency proceedings: Report

Moneycontrol News
The National Company Law Tribunal (NCLT) has ordered insolvency proceedings against debt-ridden Winsome Diamonds and Jewellers, according to a report by the Hindu Business Line.

The corporate insolvency process commenced on February 13, and  creditors have been asked to submit their claims by February 27, the report said.

The Debt Recovery Tribunal (DRT) estimates the Jatin  Mehta-owned company owe lenders Rs 4,700 crore, the report said.

Jatin Mehta was reported to be India's second largest wilful defaulter. Now, the Punjab National Bank (PNB) fraud could topple it.

Both the CBI and Enforcement Directorate (ED)  have filed cases against Winsome Diamonds and Forever Precious Jewellery.

The NCL report said Winsome Diamonds and Jewellery received summons from the Serious Fraud Investigation Office (SFIO) in July 2016.

The last limited review report says the company's accounts have been classified as non-performing assets by banks due to defaults, the Hindu Business Line says.

In 2015, the company had filed a suit against its overseas defaulters for non-payment of bills, at Sharjah Federal Court in UAE.