Gitanjali Gems may lose De Beers sightholder status

SURAT: The multi-billion dollar Gitanjali group owned by Mehul Choksi is likely to lose its prestigious sightholdership with the world’s leading diamond mining company De Beers following the multi-crore banking scam involving Choksi and his billionaire nephew Nirav Modi.

As scam unfolds, world’s largest diamond mining company De Beers has made it clear that the company won’t do business with firms not complying with financial propriety and industry reputation issues.

Gitanjali Gems is the sightholder — client — of De Beers since a long time and the company may lose its sightholdership over its alleged involvement in the banking scam.


Sources said Gitanjali Gems is the largest company among other Indian clients purchasing rough diamonds from De Beers at 10-yearly sales sights organized at Gabarone in Botswana.

Replying to an email from TOI, De Beers spokesperson Davin Johnson said, “We don’t comment publicly on the specifics of any individual business, but what we can say is that we require compliance with strict criteria relating to financial propriety and industry reputation issues. We don’t trade with any business where we have particular concerns.”

Industry sources said losing De Beers sightholdership will be a big blow to Gitanjali as a brand worldwide. Being a De Beers sightholder is something the diamond companies in India and around the world take pride. In every advertisement, endorsements and even during the public events the sightholder company display the DTC logo, which affirms the authenticity and reputation of the diamond company.

Diamond analyst Aniruddha Lidbide said, “I have serious doubts that De Beers will continue Gitanjali Gems as a sightholder. De Beers is very strict about financial reporting and they have set the best practice principle for all their clients across the world. Losing the sigththoldership means losing business worldwide.”