Time to Stop Bad Financial Practices in the Diamond Industry

(ehudlaniado.com) - An interesting opinion column highlighted the legal aspects of some of the business closures in the Indian diamond sector. Prominent Indian industry member Sanjay Kothari, formerly chair of the GJEPC, advocated much stronger steps against those involved in shady dealings. I’m not an investigative journalist and so not in the position to opine as to whether the actions he writes about are criminal or not. But I am a seasoned businessman, and can speak to business practices. I have spoken many times in the past against the heavy lending practices we see in many parts of the diamond pipeline. I think that an oversupply of exports favoring bank financing may lead some diamond manufacturers and dealers into a false sense of euphoria and may result in very unhealthy and unprofessional decision-making. Such practices could even lead to criminal thoughts.