H. Goldie India employee cheats many diamond companies for over Rs. 50 crore

Diamond business runs on ‘TRUST’. Here, diamond companies indulge in business worth millions on the basis of one’s market reputation and trust. There is no other guarantee needed here. And, why would need be? This is how, it works, echo many diamantaires.

It is not that there has never been breach of trust in the industry. But, diamond companies have always had mutually solved the problems in case of defaults.

This time, there has been not one but more than 30 diamond companies from Mumbai and Surat have been duped for diamonds worth Rs. 50 crore. The amount could be more than this as Diamond World is yet to get information on the exact quantum of the loss incurred.

Around 2013, Sharookh Kocheck, MD, H. Goldie (India) Ltd introduced Nirav Shah as an employee of H. Goldie India to many diamond companies in Mumbai and Surat. Nirav Shah was introduced as an employee who would conduct business in India on behalf of H. Goldie India. Till December 2014, diamonds worth crores of rupees were traded through Nirav Shah. However, in January 2015, Nirav Shah bought goods worth around Rs. 50 crore on memo from various diamond companies in Mumbai and Surat and eventually fled with the goods.

The diamond companies have filed an FIR. Even Nirav Shah was arrested but later was bailed out. Complaints to H. Goldie & Co. (UK) have released a statement saying that the ‘unauthorised transactions’ carried out by an employee of the Indian subsidiary of H. Goldie UK., viz. H. Goldie Consultants and Marketing India Pvt Ltd (“H. Goldie India”) without either the knowledge or consent of H. Goldie UK. “H. Goldie India has said that Nirav Shah is no more their employee so should not be held responsible for the business that was conducted. If this was so then why it was not made known to all the diamond companies,” said a diamond company.

Diamantaires have even approached the Gem and Jewellery Export Promotion Council. The GJEPC has written to Mark Boston, Chairman, H. Goldie UK, requesting them to mitigate the losses incurred as early as possible. (Diamond World has the letter written to Mark Boston.) We spoke to Vipul Shah, Chairman, GJEPC. He said, “It is an unfortunate incident that has happened. We, at the council, expect it to be sorted out in an amicable manner.”

‘We need an assurance from H. Goldie & Co. about the payment of diamonds sold to their employees in India. We can wait for the payment. However, our repeated emails to Mark Boston have gone unanswered,” said a diamond company.

Diamond World even has received screenshots of Mark Boston’s company blog from one of the diamantaire (which has been removed from the blog as well as google cache pages), which shows both Sharookh Kocheck and Nirav Shah along with diamantaires on the occasion of inauguration of their India office. Also, the Memo copy already had the signatures of Nirav, which would further bind H. Goldie & Co. legally, financially and morally. Few companies also have the CCTV footage of Nirav while taking the delivery of diamonds.

“We are content the way the issue is being handled by the GJEPC. But it would be better if the senior authorities at GJEPC, Bharat Diamond Bourse and the industry leaders unite to help us fight against H. Goldie UK. They (H. Goldie UK) can’t just tell us that the investigation is on. What we want is assurance from H. Goldie UK about our payments,” says a spokesperson from a diamond company.

Diamond World has received information from diamond companies that Mark Boston was in India in 2014. While in India, he met brokers (whose names we can not divulge) and told them that it was for the first time that H. Goldie was buying polished diamonds in India and the payment might be delayed. But he assured that incase of delays the suppliers should contact either Sharookh Kocheck or if delayed further, the suppliers can contact H. Goldie office in London.

Now, there are questions that are left unanswered as to why H. Goldie & Co., a major diamond broking company approached mid-sized companies and not the major players in India? Why the page showing Sharookh and Nirav has been removed from Boston’s blog? Why did H. Goldie India not inform the diamond companies about Nirav Shah leaving the company or being unauthorised to do business on their behalf? Was it a ploy to dupe unassuming diamantaires for whom business means trust?

In this scenario, the diamond companies who would suffer the most are the small sized companies. They would be almost wiped out of the business if justice is not done, says a worried diamantaire.

H. Goldie (UK) is one of the oldest diamond brokers having offices in Antwerp, London, Mumbai and Gabrone. The company is serving the international clients for the past 100 years.

Emails to H. Goldie UK and H. Goldie India remain unanswered at the time of filing of the story.

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