Another Surat textile firm in vanishing act

In yet another blow to the textile industry of Surat, a textile commission agent has vanished from the city, duping local traders to the tune of Rs 1-1.5 crore.

The commission agency was situated in India textile market, christened P K Trading and Sri Krishna Synthetics, since the last few months.

The firm was closed since Saturday, causing panic among the creditors, most of them textile traders. The firm did not open or Monday and Tuesday and was also found to be closed on Wednesday morning. The creditors tried to contact the firm owner, known as PK in the market circles, but their efforts went in vain.

The Federation of Surat Textile Traders Association co-ordination secretary Sardar Attar Singh confirmed that the commission agent has vanished.

"The firm has not opened since the last four days, and has vanished. The firm, the latest to vanish from Surat, has caused losses of approximately Rs 1 crore to the local textile traders. We expect the amount to rise to Rs 1.50 crore as more traders, who have been defrauded by the firm, approach us," he said.

Singh also said with the textile industry facing recession a few more firms could vanish over the next few weeks, and appealed the traders to be extra cautious, while dealing with new firms.

The textile industry of Surat has been plagued by vanishing firms. According to estimates, the industry has suffered losses to the tune of Rs 150-200 crore in the last one-and-a-half years, due to the vanishing firms.