The Hindu : Rs. 2-crore cheating case against firm

Online edition of India's National Newspaper
Sunday, Feb 01, 2004

Andhra Pradesh

Andhra Pradesh

Rs. 2-crore cheating case against firm

By Our Staff Reporter

NIZAMABAD, JAN. 31. A number of traders hailing from West Bengal, Karnataka, Tamil Nadu and Maharashtra have been allegedly duped by a firm here of over Rs. 2 crores after entering into deals to supply maize.

At least five persons have approached the Nizamabad police and complained about the alleged fraud. Three of them are traders from Davengere district of Karnataka and one an executive of an export firm from Kolkata. They had entered into an agreement with the firm, and sent hefty amounts as advance.

While SAF Fermion Ltd. is seeking to recover Rs. 30 lakhs, four other trading firms — Revanasiddheswara Traders, Harihar, Davengere, K.Iqbal and company, Abrar and Company and Sidhanur Revana Basappa and company— all from Davengere, are trying to get back Rs. 32 lakhs. Another trader is said to have paid Rs. 15 lakhs for supply of maize. There are others from Maharashtra and Tamil Nadu, who have also been duped.

The Nizamabad police have registered a complaint and arrested one of the two owners in connection with the complaint, while the other is absconding after the police issued a "look out notice" against him.

T.K.Goutam, Chief Manager, Exports, SAF Fermion Limited, a Kolkata-based export house, approached the Three Town police station with a complaint about the "delaying tactics" of the firm in not returning a sum of Rs. 30 lakhs paid as advance for supply of 1,900 tonnes of maize for poultry feed to be exported to Bangladesh. The firm had entered into an agreement with the Nizamabad company on November 22 last year.

According to Mr. Goutam, the firm started giving lame excuses for the delay in supply of maize. The Kolkata-based firm had an agreement with a Bangladesh export house for supply of 2,000 tonnes maize. Once the firm started delaying, the representative of SAF Fermion Ltd. came to Nizamabad to take back the payment. The representative, who met one of the owners in his shop on January 12, was allegedly not only refused payment but also thrown out. Mr. Goutam went to the Three town police station and lodged a complaint.

The traders approached the Nizamabad Chamber of Commerce and Industry for redressal of their grievances. The Chamber president, Rajeev Puri, confirmed this, said he had contacted one of the owners and asked him to refund the money. The Superintendent of Police, N. Madhusudan Reddy, who took a serious view of the case, asked the police to take stern action.

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