FOSTTA’s application receives over 3,000 complaints on default payments within a month of launch

The application was launched around 30 days ago to control the menace of fly-by-night firms, which default on payments.

Sources in the textile industry say there are over 170 textile trading markets in Surat city, with 30,000 traders having Goods and Services Tax Number (GSTN) and others who run businesses without it. The FOSTTA, which has around 1,100 registered members from Surat, also started an awareness drive to get textile traders in the city registered on FOSTTA FORUM.

Talking about the application, FOSTTA President Kailash Hakim said, “Every year, the textile industry faces losses worth hundreds of crores due to fly-by-night firms who default on payments to textile traders, weavers, embroidery unit owners, and dyeing and printing factory owners. The firms purchase finished and unfinished (unprinted) fabrics from traders and default on payments. Out of 100 such firms, over 70 are from other states, and the rest are locals. We have tied up with 146 ‘kapda mandis’ across the country so that the cross-verification of textile businessmen from other cities and states can be done. We will also ask the textile traders of these ‘kapda mandis’ to download FOSTTA FORUM.”

He further said, “We have started spreading awareness among textile traders from various markets in the city and are convincing them to download the application and also register themselves as FOSTTA members. Through this application, registered and non-registered traders can submit their complaints along with their name, firm details, GSTN and address, and also submit details of the firm and owner who default on payments. The complainant also has to upload the details of textile fabrics sold and the amount due from buyers.”

As per sources in FOSTTA, textile factory owner Surat Harsh Hakim received a call through a broker who wanted to purchase grey bales (each bale consists of 100 metres of unprinted fabric). The broker introduced Hakim to a buyer, also a textile trader from Surat. The buyer placed an order for around 20 grey bales. Hakim, who had already downloaded FOSTTA FORUM application on his mobile phone, entered the name of the buyer and found that different textile traders from Surat had registered three complaints of “default payments” against his firm on the app. Hakim cancelled the order and shared details of the buyer firm with the FOSTTA office.

“Once the complaints are generated, our team gets in touch with the buyer firm, which has allegedly defaulted on a payment and tries to resolve the issue through conversations. Over 80 per cent of such issues are generally resolved through conversations. Complaints which are not resolved have to go to arbitration. Out of the 3,000 complaints, which have been received in a month, we have resolved 20, and working on around 300 others,” Hakim added.

Talking about the college students hired as telecallers, Hakim said, “We will pay them based on the hours they work. We will train them, starting Thursday. We have selected these students after visiting different colleges. Once a defaulter receives a call from FOSTTA, he would surely want to mutually settle the matter. We are short of hands, and once these students start working, they will be able to work on more pending complaints.”