Gem and Jewellery Export Promotion Council (GJEPC), the apex body of the country’s gem and jewellery exporters, has issued show cause notices to Nirav Modi and Mehul Choksi, who are allegedly involved in Rs 12,700-crore bank loan fraud.The council has sought an explanation from both within seven days as the entire incident has caused an irreparable damage to the industry, affecting exports and tarnishing the image of the gem and jewellery trade.If both the jewellers fail to give an explanation to the council within the stipulated time-frame, then the council can cancel their membership and send a red alert to the gem and jewellery trading community, both in India and abroad, to refrain from dealing with any of their companies. Colin Shah, vice-chairman, GJEPC, said, “The council has issued show cause notices to the defaulters for alleged siphoning off funds fraudulently through PNB. GJEPC reiterates its condemnation to this unfortunate and ‘one off ‘ incident in the Indian gem and jewellery industry.”Trade sources said that the council also wants to send a message to the banks and financial institutions that the industry is taking stern steps against the defaulting jewellers as it is apprehending that credit flow to the gem and jewellery sector may decrease substantially in the coming days.