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IBJA to review franchise agreement with Rajesh Wadhawan group company

India Bullion and Jewellers Association (IBJA) has sought legal opinion on its franchise agreement with IBJA Gold Pvt Ltd. Under a franchise agreement in 2015, IBJA lent its brand-name and logo to the company in exchange for a non-refundable depos...

ET Bureau|
Oct 31, 2019, 07.39 PM IST
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By Ram Sahgal & Jaikishan Yadav

MUMBAI: The India Bullion and Jewellers Association (IBJA) has sought legal opinion on its franchise agreement with IBJA Gold Pvt Ltd, set up by the Rajesh Wadhawan group, to sell branded gold coins, after recent “media reports” surfaced on the crisis at Wadhawan Global Capital promoted housing finance company DHFL.

Under a franchise agreement in 2015, IBJA lent its brand-name and logo to the company in exchange for a non-refundable deposit and 10% equity in it, said an India Bullion and Jewellers Association official. He added that IBJA had no management interest in IBJA Gold Pvt Ltd.

“It’s a franchise agreement to sell IBJA branded coins,” the trade body official said. “However, we have sought opinion from our lawyers (on the agreement) after recent media reports surfaced on Wadhawan group. IBJA (the association) has no management interest in the said company.”

IBJA Gold Pvt Ltd’s web site says, “With state-of-the-art in-house manufacturing unit, the company presently supplies to 200+ jewellers in India. It has an exclusive retail showroom at R-City mall, Ghatkopar, Mumbai and also promotes its products online through own website www.ibjagold.com and various leading marketplaces such as amazon.in, flipkart.com, tatacliq.com, & paytmmall.com.”

IBJA is a leading gold bullion and jewellers’ association for the promotion and regulation of the gold trade. The gold prices issued by IBJA are used by the government to price its sovereign gold bonds.

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