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India's Biggest Bank Fraud Is Giving Jewelers a Headache
In his 50 years as a jeweler, Pankaj Parekh has seen a few scams shake the credibility of India’s $60 billion gem and jewelry industry. The latest multibillion-dollar fraud will give banks the impetus to rein in credit for around 300,000 of his counterparts, he says.
Already, Parekh’s business has come under increased scrutiny. One lender last week questioned the validity of a recurring expense charged by a gold supplier for 180 rupees ($2.80) on his books, he said.
“To date, not once had my lender asked me about this charge,” Parekh said over the telephone from Kolkata, where his family-run jewelry export business is based. “But now, they are raising queries for everything.”
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