
The apex body of Ahmedabad-based fabric traders, Maskati Kapad Market Mahajan, has blacklisted around 3,000 traders and agents across India for alleged fraud. The Maskati Cloth Mahajan has members who supply fabrics to 25 states.
A list has been prepared by the association of traders and agents who have failed to pay around Rs. 159 crore to traders based in Ahmedabad and Maskati Kapad Market Mahajan has also urged its members not to conduct business with them.
The Mahajan supplies the largest volume of cotton fabrics across India since Ahmedabad is the largest cotton textile hub. Cases of cheating and fraud, however, have gone up over the years since many traders do not pay for the goods once received.
A Special Investigation Team (SIT) has been set up by the Ahmedabad police to resolve cases of cheating involving textile traders. The SIT was formed in October 2020 and by the end of December, it had recovered around Rs. 23 crore through settlements in many fraud cases.
Around 1,924 traders and 1,047 agents across the country have been blacklisted by the association, of which 786 traders and 412 agents are from Ahmedabad.
Gaurang Bhagat, the President of Maskati Kapad Market Mahajan said, “We have received a glut of complaints from our members and have tried to resolve the issues. However, there are some 2,500 traders and agents who deliberately delay the settlements, so we have decided to blacklist them all. The SIT is investigating 1,277 cheating cases involving traders and 677 cases involving agents. These traders and agents have been blacklisted. The total due amount is Rs. 114 crore.”
He added that the association is also acting tough on the agents who are going to new suppliers on behalf of the defaulters.
The Mahajan’s Secretary, Naresh Sharma said, “The cases have gone up after Covid. These defaulters are based in Gujarat and other states too. We advise our members to do proper due diligence by checking the address, GST number and other documents of the buyers before doing business with them.”