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Deepak International under fire
Diamond polisher plant buyer faces lawsuit in Ontario and questions in legislative assembly

Stewart Burnett
Northern News Services
Wednesday, February 25, 2015

SOMBA K'E/YELLOWKNIFE
Deepak International is facing a lawsuit in Ontario Superior Court from a financier and was the subject of questions in the legislative assembly last week.

The company bought two empty diamond cutting and polishing plants in Yellowknife and was approved as a diamond manufacturer in 2013 by the GNWT, something Industry, Tourism and Investment Minister David Ramsay called "the rebirth of the secondary (diamond) industry here in Yellowknife" and "a big announcement" at the time.

Deepak International received financing of up to $20.5 million to help purchase the plants, according to court documents. Chippingham Financial Group, the company that arranged the financing, is now suing Deepak International for $615,000 for allegedly refusing to pay a finder's fee.

Deepak Kumar, president and CEO of the company, told the New York Times last year that he expected the buildings to be up and running by the end of 2014 but they still remain empty.

In the legislative assembly on Thursday, Yellowknife Centre MLA Robert Hawkins questioned if Deepak international had made lease payments to the Department of Transportation for the airport property.

Transportation Minister Tom Beaulieu responded that he could not confirm whether or not the company has lease arrears with the government.

Hawkins said he'd "hate to see the Northwest Territories lose its position on these growing bills."

Beaulieu confirmed that if the government noticed lease payments were not being made, it would investigate the issue.

Calls to Deepak International and Chippingham Financial Group were not returned by press time.

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