Published
Dec 21, 2017
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Mahesh Bhupathi, Lara Dutta initiate insolvency proceedings against Gitanjali Gems

Published
Dec 21, 2017

Celebrity husband-wife duo Mahesh Bhupathi and Lara Dutta have initiated insolvency proceedings against India’s top jewellery manufacturer Gitanjali Gems Ltd to recover their pending dues for endorsing the brand.
 

Gitanjali Group


Tennis star Bhupathi and Bollywood actress Lara were signed as brand ambassadors by the jeweller in 2016 and shot a campaign for Gitanjali that was aired last year.
 
Saurav Bhattacharya, Group President, Gitanjali, had commented on the campaign saying, "The new Gitanjali Jewels campaign is about romancing the moments that make a great love story, Lara and Mahesh with their fairytale romance and great success made the perfect choice."

However, the love affair between the brand and the couple seem to have ended and gone downhill as the matter has reached the Mumbai bench of the National Company Law Tribunal under the Insolvency and Bankruptcy Code (IBC).
 
“Both the brand ambassadors have a two-year contract with the company for public appearances. During the tenure of the contract there were some cancellations for which the company did not pay its dues to the celebrity couple,” the Mint reported citing an anonymous source.
 
“The entire services (four work days) are yet to be performed and as such the payment, if at all, is due only on pro rata basis for the part services performed. However the celebrities are insisting that the entire payment is due and payable according to their interpretation of the agreement. They have therefore filed an application before NCLT for claiming entire dues and the matter is pending for adjudication,” the spokesperson told the Mint.
 
Gitanjali Group is one of the world’s largest branded jewellery retailers and has more than 4,000 points of sale in India. It also has stores in the US, China and Japan, along with presence in Europe and West Asia.
 
Gitanjali Gems Limited has posted a sales revenue of Rs 3902 crore (approx $597 million) with profits surging 40 percent to Rs 64 crore ($9.8 million) in the July-September period of the 2017-18 fiscal.

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