A huge loan failure to pay running into hundreds of crores has sent wavering in the Indian diamond industry, by a most important diamond company on loan repayments.

Apex industry body Gem & Jewellery Export Promotion Council (GJEPC) has begun hard work to reconcile the issue linking the company and the lender banks.

According to industry experts, JB Diamonds, a DTC sight-holder and a leading diamond company has been incapable to repay loans to alter of Rs800 crore to a group of banks. This is due to financial troubles.

The company had taken the loans from an association of a dozen banks directed by SBI in the year 2008 and 2009, however has failed to pay on repayments.

Yesterday in a meeting the lender banks took up the loan non-payment issue with GJEPC. The banks also informed that they have planned levy of JB Diamonds as NPAs (Non Performing Assets). By seeing the heavy amount of the evade GJEPC has offered to Mediate in the issue.

Vice Chairman of GJEPC, Sanjay Kothari supposed that they are holding discussion with both sides and are playing the role of mediator in the argument in the larger concern of the diamond industry.