BTC barred from Guwahati auction

Bhagyalakshmi Tea Company (BTC), which was found indulging in fraudulent activities where it shortchanged buyers at Guwahati Tea Auction Centre (GTAC) by a special investigation team, has been barred from participating at GTAC for one year and has been fined Rs 1 lakh.

The two warehouses, Khemka Tea Warehousing Corporation and Laxmi Tea Warehousing Corporation, and Eastern Tea Brokers, who too were found to be party to the malpractice, have been fined

Rs 50,000 each and the two warehouses have been suspended for a period of six months, informed a top official of GTAC to Business Standard.

The official said that the decision, which was taken at the “main committee” meeting of GTAC, chaired by Assam Chief Secretary P C Sharma has set the condition on BTC that if it fails to pay the fine of Rs 1 lakh, it would be barred from participating at GTAC for lifetime.

“Our objective was to send the message loud and clear to all the participants at GTAC that no such fraudulent activity will be ever tolerated and regain the trust of the buyers,” said the official. He feels the promptness with which GTAC took action against the erring participants will help it “regain” its “lost ground.”

The special investigation team (SIT) had found BTC of displaying samples of the original mark (premium quality) to buyers at GTAC before the teas were auctioned, but later supplied teas of inferior quality. The tea company owns two tea marks — Nahorguri and Kaziranga (named after two of its tea gardens). BTC was also found to have influenced the two warehouses and the tea broking firm to collude in the malpractice.

The SIT was formed by the GTAC after the scam was first detected on February 18 when some buyers of GTAC got an inkling of something being amiss in two of the warehouses, which store teas of BTC.

Though Business Standard tried to contact Bhaskar Barkakaty, owner of BTC, to elicit his reaction, he could not be reached.