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Venkat   29 June 2017

Fraud in business

This is regarding a business fraud

This is a scam which is hurting small time business community in India.
Recently one trading company with clear intention to dupe the supplier from Coimbatore has sent an email to the other dealer in another state (Karnataka) by seeing their details through online.
The Trader wants 21 Tons of Ragi seeds and the payment terms are cash upon delivery.
The Dealer in Karntaka is a small retailer and he has passed on this information to the wholesaler in Karntaka.
The wholesaler then interacted with the Trader and the deal was finalized. The materials were supplied upon LPO. 
The trader has paid cash of 2 lakhs upon delivery and has issued cheq for the balance saying that he will clear the cheq upon present.
But the cheq got bounced when presented and there was a delay tactics saying one reason or the other.
Slowly the calls were not answered and the retailer and the wholesaler got a doubt .  When they visited Coimbatore, it was found that the company is a bogus one and the office cum godown got vacated.  Even they did not filed sales tax returns for many years. The details givine in the sales tax office at the time of registration also found to be wrong.They have visited the bank and found the account is correct and the address is wrong
When the trader and the wholesaler decided to lodge police complaint, the police has adviced them not to do so saying that the Trader may file a case against them of torturing for money etc.
Now the wholesaler caught hold of retailer saying the business came from him, so he as to bear the loss and torturing for money.
Please advice how can this be resolved.
The retailer has no money to pay wholesaler
Wholesaler is calling and messaging retailer everyday and torturing for money.
Actual fraud escaped.
Please advice - will this can be solved with out police complaint.




 1 Replies

Siddharth Srivastava (Advocate)     29 June 2017

You may contact registrar of companies in order to ascertain the correct address of the company and whereabourts of directors. You may again present the cheque (If cheque is within three months) and can lodge complaint u/s. 138 N.I. Act. If required you may also file complaint case. Consult a lawyer with details. 

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