Gujarat: Ceramic players to act tough against frauds

After traders in textile sector, it is the turn of ceramic manufacturers in Gujarat to act tough against fraudsters. Ceramic players will now blacklist all the buyers, who fail to pay and even initiate criminal action against them. Industry players said that frauds worth Rs 20 crore have been reported in about six months. There are over 15 buyers, who repeatedly fail to pay causing financial harm to about 70 companies.

In order to device a road map to deal with fraudsters, a meeting of ceramic manufacturers was held on Friday in Morbi. "We are taking these frauds seriously. Soon, a road map will be chalked out to deal with the fraudsters. But one thing is clear, we will blacklist all the fraudsters and take criminal action against them," said Nilesh Jetparia, President of Morbi Ceramics Association, Wall Tiles Division.

As part of the drive, a list of buyers who have defaulted for Rs one crore or more, will be prepared and circulated among the manufacturers, so that they do not fall in the trap. Moreover, cases of frauds will be registered at police stations. In one such case, a fraudster was arrested from Vadodara on Thursday.

K G Kundaria, former president of Morbi Ceramic Association, Vitrified Tiles Association, said that sellers should be vigilant before dispatching the consignment. He also admitted that market conditions are such that one has to sell on credit, increasing chances of fraud. "Often companies sell goods without verifying the credentials of the buyer. Market condition is not conducive to demand advance from the buyers. There are some habitual offenders who take advantage of such a situation. Sellers also sell out of fear that if he does not sell, his competitor will," said Kundaria.

Industry players say that such frauds have come to the fore at a time when the sector is passing through a slowdown and so it is necessary to act tough on wrongdoers.