Major Mumbai-based firm returns to city due to difficulties in Surat bourse

Kiran Gems which is helmed by diamond trader Vallabhbhai Lakhani and was one of the first firms of its kind to move to the Surat Diamond Bourse SDB is returning to the city months after accepting a onetime offer to wrap up operations in Mumbai and set up shop in the SDBWithin two months of launching operations from the SDB the firm realised that business was only 20 per cent of what it was in Mumbai So before losses multiplied the company decided to return to the city While the solution ensures the companyrsquos honour is preserved SDB has agreed to meet the firm halfway to avoid any problemsThe Kiran Avenue township built by Vallabhbhai Lakhani director of Kiran Gems for his 1200 employeesAccording to market sources 15 truckloads of goods from Kiran Gemsrsquo Surat office and staff reached Mumbai on Sunday All the companyrsquos staffers who had gone to Surat had returned to the city on Friday along with their families While the employees are working out of the Capital building outside the Bharat Diamond Bourse BDB discussions are being held about opening Kiran Gemsrsquo office in BDB in a couple of daysSubject of much discussionThe news of Kiran Gemsrsquo return has spread like wildfire A businessman told midday ldquoBasically connectivity via international flights is not available there unlike in Mumbai There were also some staff issues and due to this business had declined drastically compared to Mumbai They were doing only 20 per cent of their regular business so instead of incurring losses by sticking around Vallabhbhai Lakhani used his business acumen and decided to start his operations in Mumbai againrdquoldquoHowever to ensure that this does not have a major impact on other SDB traders it was decided that Kiran Gemsrsquo SDB office would also remain operational and once the SDB is up and running both operations will continue He had been doing business in Mumbai for years so there is no need to start from scratch The businessmen of Mumbai are ready to welcome himrdquo added another businessmanLetter to LakhaniIn a release issued by SDB its media committee convenor Dinesh Navdiya said that after the inauguration in Surat 80 per cent of the members would start their offices in the bourse by May 2024 and they had given their consent to have the necessary furniture made Lakhani had also committed to shifting the Mumbai business committee to SDBDespite this the SDB committee members have unanimously agreed to Kiran Gemsrsquo shift and signed a letter to Lakhani stating that it was natural as there was still some time left before most of the offices in SDB were formally opened and for business to boom In such a situation to ensure that Kiran Gems does not face any problems conducting its business all the members of the managing committee suggested that Lakhani should continue his business from Mumbai as wellNavdiya said ldquoIt is absolutely true that the SDB committee gave a letter to Kiran Gems They have until May 10 to move It is becoming difficult for businesses to come to a standstill that is why this step has been takenrdquo A businessman said ldquoIt looks like Kiran Gems will start working from Bharat Diamond Bourse very soon It is also understood that old staff members who did not choose to go to Surat are being called back so that a team of trusted people can work together againrdquo When contacted Lakhanirsquos office said that he was in a meeting and would contact this reporter when he was free However no messages or calls in this regard were received by press time15Truckloads of Kiran Gems goods that reached Mumbai from Surat on Sunday