In a big relief to Arjav Diamonds, one of the world's top five Indian diamond company based in Antwerp and the biggest rough diamond distributor, Amsterdam-based ABN Amro Bank has reached an agreement with it on Thursday last to settle the pending commercial disputes between them.
The global diamond industry, mainly the diamantaires in Surat and Mumbai, had received a serious jolt when ABN Amro had terminated the credit facility of the leading rough diamond distributor in India and Antwerp and Diamond Trading Company (DTC) sigthholder for recovering debts amounting to $154 million (Rs 831 crore) in December 2012.
Arjav diamonds in turn filed a civil suit in Antwerp against ABN AMRO claiming $230 million from the bank.
In an email statement, senior press officer of ABN AMRO's Amsterdam head office Jeroen Van Maarschalkerweerd said, "ABN AMRO and Arjav reached an agreement on February 7, 2013, which settles various pending disputes arising from their former commercial relationship. The parties have agreed to abandon all proceedings and discontinue all measures introduced or brought against one another and to end the relationship between ABN AMRO and Arjav." Jeroen, however, refused to disclose any further details on the settlement agreement.
Industry experts said amount as high as $50 million - though this was strongly denied by the bank-has been waived off by the bank. Also, another reputed international bank is learnt to have advanced some $105 million to help Arjav repay its debts to ABN AMRO.
Director of Arjav Diamonds Ashit Mehta told TOI, "We have reached a settlement. More details will be given later on."