Yet another Surat textile firm in vanishing act

After a lull of several days, one more textile firm vanished from Surat on Monday. Industry sources said that the firm was run with the name V R Prints at Tirupati textile market, Ring Road, and was mainly dealing in dress materials.

The firm owner, whose name is not known, had purchased grey cloth from several weavers, and duped them by disappearing after closing down his shop.

Though the amount of losses caused has not been big, just around Rs 10 lakh, the interesting thing is that the firm was in existence at the said place since only a week.

Sardar Attar Singh, organisation secretary, Federation of Surat Textile Traders Association, said, "The firm was in existence since only a week and has vanished. This shows that it was a pre-planned conspiracy and the firm was opened with the sole intention of committing fraud."

"We have got the names of five weavers, who have been duped of around Rs 10 lakh by this firm. The figure could increase, but we are not in a position to predict anything as yet," he added.

The textile industry of Surat has been plagued by vanishing firms. According to estimates, the local industry has lost close to Rs 150-200 crore, by way of vanishing firms, in the last one-and-a-half years.

In most cases, the traders themselves are to be blamed for the losses, as they supply the goods to just about anyone, without even verifying their background.