Business

Taking steps to clear customers dues: Nathella

Nathella Sampath Jewellery is more than seven decades old, and has seven retail showrooms in Tamil Nadu  

Noted jeweller Nathella Sampath Jewelry, which has shut its outlets here citing cash crunch on Wednesday said it has taken steps to mitigate the crisis and that it planned to repay dues to subscribers of gold savings schemes by March next year.

The company in a statement said it has informed the Economic Offences Wing police about the steps that are being taken to tide over the problem.

Last month, some customers alleged that the jewelry had defrauded them of their deposits made in monthly instalments for purchase of gold jewels.

Police complaints were lodged by some customers following which the firm closed its operations at all eight branches in and around the city.

The firm had then itself assured customers that it was taking all steps to meet its commitments and sought “sufficient time” to clear the dues.

Stating that it enjoyed the “unwavering trust” and ’confidence’ from the public built over seven decades, the company said, the promoters were committed to living up to the trust and confidence reposed on them over the years.

The management was extremely disturbed and said that it never had the intention to non-repay the subscribers

Banking operations were adversely affected so much that the bankers chose to recall the “working capital facilities” from June this year which brought the company’s operations to a “grinding halt”, it said, adding all the cash flow had cascading effect on the savings schemes.

The promoters were making efforts to liquidate their assets and were hopeful of coming out with a time bound programme for repayment

The management said the repayment to customers having saving schemes would be settled through bank transfers and the company would inform them once the payment was made.

The company said it planned to clear the dues by March 31, 2018.


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Printable version | Jun 10, 2021 4:30:37 PM | https://www.thehindu.com/business/taking-steps-to-clear-dues-of-customers-nathella/article21101223.ece

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