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Kochi: Owners of the Gulf-based Atlas Jewellery group are trying to settle its Dh 550 million (approximately Rs 1,000 crore) dues by offloading its inventory, according to sources close to the group.

The move comes amid reports that officials of 15 banks operating in the Middle East have approached the Dubai police complaining that the group with operations in several Gulf countries and in India has defaulted on its payments.

“We understand the owners are trying to pay off the dues and save the reputation which was built over the last three decades,” the sources said.

There were reports that the showrooms of the company had been withdrawing the stocks for the last one month on the plea that they were being set for hallmarking. 

A top official of a broking firm with operations in Dubai also confirmed the company has been in dire financial straits. “Yes, we have confirmed that the banks have approached the police this week,” he said, refusing to elaborate.

 police complaining that the group with operations in several Gulf countries and in India has defaulted on its payments.

“We understand the owners are trying to pay off the dues and save the reputation which was built over the last three decades,” the sources said.

There were reports that the showrooms of the company had been withdrawing the stocks for the last one month on the plea that they were being set for hallmarking. 

A top official of a broking firm with operations in Dubai also confirmed the company has been in dire financial straits. “Yes, we have confirmed that the banks have approached the police this week,” he said, refusing to elaborate.

Some Indian banks are also reported to have an exposure to the group. The Gulf media has been agog with rumours about the jewellery group landing in financial troubles for quite some time.

Gulf News reported on Thursday that the bankers had met on Wednesday to discuss the default by the group which operates over 50 showrooms in the Middle East nations.

The group, which has of late diversified into healthcare and realty sectors, has also opened jewellery showrooms in India. Reports also said Mr M M Ramachandran who founded the group has been incommunicado for the last one week.

Atlas Jewellery, the brand which prides in being the "most trusted", is reportedly deep in debt, and the founder of the group, MM Ramachandran, better known as Atlas Ramadchandran, has gone missing with Dirham 550 million (Approaximately Rs 1,000 crore).

Kerala Online News reported that Atlas Ramachandran, who is known for appearing in the advertisements for his brand, went missing after borrowing Dirham 550 million in loans from 15 banks. While a few of them are Indian banks, there are many that operate from the Middle East as well.

According to the news site, many of the banks are preparing to sue Ramachandran for deliberately refusing to pay back the loan, along with charges for cheating them.
 
Marunadan Malayali has meanwhile speculated that the man who was not named in the Gulf News report is indeed Ramachandran. The site claims that Atlas Jewellry, which opened its first brank in Kuwait, and spread all over the Middle East in a span of three decades, has been swimming in debt for many years now.
 
It is understood that the group is now trying to pay off the debt by offloading their inventory. According to Deccan Chronicle, an executive of a Kochi broking firm that has operations in Dubai has confirmed that the news about the banks seeking action again Ramachandran is true.
 
"Yes, we have confirmed that the banks have approached the police this week," he said, refusing to elaborate. 
 
Meanwhile, even after repeated attempts, Ramachandran, nor his secretary could be contacted.