The country’s gems and jewellery industry, which has been reeling under pressure with its working capital getting blocked due to refund delays under GST, is apprehending the ‘ripple effects’ of the $1.8-billion fraud involving celebrity jeweller, Nirav Modi, tightening credit flow to the industry.

According to Prakash Chandra Pincha, regional chairman, eastern, GJEPC India, bank advances to the sector, which has been sluggish, could be affected. “Some ripple effects are bound to happen and it (the fraud) will have some psychological impact on the minds of loan advancers. This could impact credit flow to the industry or cause delays in extending advances,” Pincha told newspersons on the sidelines of a gem and jewellery exhibition here on Friday.