Taking steps to clear dues of customers: Nathella

Noted jeweller Nathella Sampath Jewelry, which has shut its outlets here citing cash crunch, today said it has taken steps to mitigate the crisis and planned to repay dues to subscribers of gold savings schemes by March next year.
The company in a statement said it has informed top officials of the Economic Offences Wing police here about the steps 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.
The retailer has assured customers that it was taking all steps to meet the committments.

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.
It said the management was extremely disturbed and never had the intention to non-repay the subscribers and claimed the situation was forced upon them due to factors like "business set backs."

Banking operations were adversely affected so much that the bankers chose to recall the "working capital facilities" from June this year which led the company's operations to a "grinding halt", it said, adding all the cash flows had cascading effect on the savings schemes.
The promoters were making "all out efforts" to liquidate their assets and were hopeful of coming out with a time bound programme for repayment in three-four weeks.
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.