Weavers demand action against vanishing firms

Expressing grave concern over the increase in instances of vanishing textile firms, the weavers of Surat have demanded strict action against the fraudsters.

The weavers, led by Manu Patel, president, Federation of Gujarat Weavers Association, met the city police commissioner Sudhir Sinha and apprised him of the situation.

"Surat is the biggest textile centre in the country, with approximately 6 lakh powerlooms and 40,000 textile firms.

Dealings worth crores of rupees take place on a daily basis in the textile industry of Surat, and the only thing that keeps the system running is the trust between weavers, brokers and traders," the representation said.

"However, in the last couple of years, there has been a spate of instances of vanishing firms, which has created an atmosphere of mistrust in the textile industry of Surat. These instances have causes losses to the tune of hundreds of crores of rupees to the industry, and the weavers have had to bear the brunt of these losses," it said.

"There are certain elements who open textile firms with the sole intention of committing fraud. These firms collect the goods, and then vanish from the city, leaving the victim traders and weavers in the lurch. The only way the instances of vanishing firms can be curbed, is by taking stern action against the cheats, as it would also dissuade others from thinking of committing fraud," it stated.