5 Surat textile firms vanish in a week

As many as five textile firms have vanished from Surat in the last five days, causing losses of an estimated Rs 11-12 crore to local traders, weavers, and a bank.

According to industry sources, Uni Fabrics India, a textile firm in the J J textile market, vanished six days back. The firm was closed since Thursday last, spreading panic among creditors.

The firm's godown in the Kohinoor textile market was also closed. The creditors tried to locate Devraj Sukhnani, the firm's owner, but he could not be found, and is believed to have escaped to Dubai, along with his family.

The firm has caused losses to the tune of Rs 7 crore. This figure includes a loan of Rs 1 crore, which Sukhnani had taken from Indian Bank. In a bid to recover its dues, the bank placed possession notices outside the firm as well as the godown, on Tuesday evening.

Meanwhile, the firm's lock was broken by office bearers of the Federation of Surat Textile Traders Association, in the presence of police, yesterday.

Around 500 sarees, a fax machine, three telephones, and other goods were found lying in the shop. The federation could not take these goods into its possession on account of the bank notice, but it did manage to get custody of textile parcels, worth Rs 10 lakh, sources said.

The federation lodged a complaint of fraud against the firm owner with Salabatpura police yesterday.

Before the drama surrounding Uni Fabrics ended, one more textile firm, also situated in the J J textile market, vanished on Tuesday. The firm was open on Monday, but was closed on Tuesday as well as Wednesday.

Established 10 years back, the firm - Gopinath Silk Mills - was owned by one Rameshbhai. On finding the firm closed, worried creditors rushed to Rameshbhai's house at Varachha road, but it was also found to be closed. According to initial estimates, the firm has caused losses of Rs 2.50-3 crore.

Another textile firm, situated in the Mahalaxmi textile market, also downed its shutters on Tuesday, and vanished, causing losses of an estimated Rs 50 lakh.

Two other textile firms, both of them situated in Millennium textile market, had also vanished four days back, duping local traders and weavers to the tune of Rs 30-40 lakh each.

The federation organisation secretary Attar Singh said, "The spurt in the instances of vanishing firms is a matter of concern for us. The industry is caught in the grip of a recession, and has lost over Rs 200 crore by way of vanishing firms in the past one-and-a-half years. The industry is in no position to bear any more losses, and it is extremely important that the entire textile industry gears up to curb this menace."