Over the past two days, media outlets and newspapers have been showering praise on a Surat-based diamond merchant for his seemingly generous Diwali bonuses—brand-new cars and apartments. Savji Dholakia, the owner of Hare Krishna Exports, gifted 600 employees, primarily diamond polishers, with cars during a lavish ceremony in Surat. The event was graced by Prime Minister Narendra Modi via video conference, alongside prominent spiritual leaders Morari Bapu and Ramesh Oza, who lauded Dholakia for his extraordinary gesture. However, a closer look reveals a different story altogether.
Contrary to the glowing headlines, the employees of Hare Krishna Exports are compensated under the Cost to Company (CTC) model. This means their annual salary is predetermined, with a portion deducted monthly under the “bonus” category. These deductions are then pooled to cover the down payment for the cars, which are marketed as “gifts.” In reality, the cars are not outright gifts but part of a structured financial arrangement.
Here’s how it works:
- The 600 cars are registered under the company’s name, not the employees’.
- Employees who received the cars had to sign a five-year bond, preventing them from leaving the company during this period.
- They are also required to pay at least half of the monthly car installments.
- By purchasing the vehicles in bulk, the company secured a discount of Rs 80,000 per car.
- Since the cars are registered under the firm’s name, Hare Krishna Exports also benefits from GST tax credits.
While Dholakia has been portrayed as a benevolent employer, the truth is that the so-called bonuses are funded by the employees’ own earnings. Even Prime Minister Narendra Modi, who addressed the event, was unaware of the underlying financial mechanics. When questioned about the arrangement, Dholakia dismissed the criticism as an attempt to tarnish his reputation, insisting that his company would cover the full cost of the cars. However, this claim contradicts the financial obligations imposed on the employees.
This isn’t the first time Dholakia’s company has faced scrutiny. In 2017, Hare Krishna Exports was fined for failing to deposit employees’ provident fund contributions to the government, raising further questions about its employee welfare practices.
While the media continues to celebrate Dholakia’s apparent generosity, the reality paints a more complex picture—one where the employees’ hard-earned money is repackaged as a grand gesture, leaving them financially tied to the company for years to come.