SOMBA K'E/YELLOWKNIFE
Diamond manufacturer Deepak International Ltd. owes the City of Yellowknife $21,000 in taxes.

Pictured here are 106 and 108 Archibald St., the diamond row facilities which Deepak Kumar of Deepak International bought for $1.79 million. The sale closed in June of last year, but not much has happened since. The company now owes the City of Yellowknife $21,000 in unpaid taxes. - NNSL file photo

It's the latest negative development for a company Yellowknife Centre MLA Robert Hawkins called "an incredible letdown."

"I'm still concerned that Deepak has over-promised and under-delivered," said Hawkins in reference to company president and chief executive officer Deepak Kumar. "We've yet to see any results or anything positive from that deal made over two and half years ago."

As reported in a previous article, The deal was that the GNWT agreed to give Deepak International the status of approved NWT diamond manufacturer, as well as the exclusive use of the polar bear design trademark on their stones.

This agreement was announced in January 2013, but the $1.79 million sale of the two GNWT-owned 5,000-square-foot diamond row properties -- 106 and 108 Archibald St. -- to Deepak International didn't close until last June.

"No matter how many times we poked and prodded to find out what the real issues were, no one seemed to know," Hawkins said.

The two cutting and polishing factories were previously owned by Arslanian Cutting Works and Polar Ice, which went out of business in 2010. Under Deepak International's new ownership, they were supposed to house millions of dollars in "state-of-the-art" manufacturing equipment and be the site of new jobs.

At the time, Industry, Tourism and Investment Minister David Ramsay called the move a signal of a rebirth of the secondary diamond industry in the territory.

"Expanding our diamond manufacturing sector will bring additional jobs and economic benefits to the NWT," he said at the time, though Ramsay declined to comment on the story this time.

More than two years later, the number of polar bear diamonds continues to dwindle due to no new supply, being that the only Deepak International is allowed to use the design.

"We still don't have any diamonds being cut or any work being done at those shops," Hawkins said. "I continue to hear more promises but nothing delivered."

Hawkins said those promises from Deepak International include multiple announcements about launches, jobs, renovations and openings which were never confirmed.

In February of this year, the company also faced a lawsuit in Ontario Superior Court from Chippingham Financial Group after it received to $20.5 million in financing to help purchase the plants, according to court documents. Chippingham sued Deepak International for $615,000 for allegedly refusing to pay a finder's fee.

Kumar told the New York Times last year that he expected the buildings to be up and running by the end of 2014.

On July 29, GNWT spokesperson Roya Grinstead told Yellowknifer Ramsay didn't have a comment for this story.

"The company has advised us that they are working towards an operational startup this year," she said.

"We don't know when."

Range Lake MLA Daryl Dolynny said he spoke with Kumar about a month ago and has been in touch with Ramsay about its progress.

"I do have faith it's going to happen," he said. "It's just taking longer than expected. We only have one shot at this and we want to get it right."

When asked about the company's current financial situation with the city, Dolynny said, "Arrears happen all the time for many various reasons."

Hawkins wasn't as optimistic about Deepak International's future plans for the local industry in Yellowknife.

"I'd be surprised if it came back."

Despite multiple attempts, Kumar could not be reached for comment on his company's plans for the property before press time.

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