Salem association suspends defaulters

Chennai: Salem IT Association (SITA) has terminated the membership of two channel partners for defaulting on payments to Delhi-based national distributor Iris Computers. The association took the strong step forward to check the number of defaulters on the rise. The two partners who have been suspended from the association are Vairamudi, Proprietor of VS Computers and A Suresh Anbu and Karthikeyan, Proprietors of Sreeram Hi-Tech. Besides that the association has also advised traders in Salem against giving credit to these partners.

Iris Computers has initiated legal proceedings against these two companies in the Bengaluru Court under Section 138 for bouncing cheques and defaulting payments. When contacted, Kamini Talwar, Director, Iris Computers confirmed that the company has initiated legal action against VS Computers and Sreeram Hi-Tech. “We initiated legal actions against VS Computers and Sreeram Hi-Tech as they had defaulted on payments worth nearly Rs 8 lakh. They failed to appear for the hearing in the court and when we tried for some sort of settlement, there were defaults again. Finally the court has issued non-bailable warrants against both the parties,” Talwar informed.

Claiming that the dealers have paid only a fraction of the amount, Rs 1 to 2 lakh, for the Rs 8 lakh they owe, Talwar said that the partners would have to pay the full amount or face the consequences. “The distributors are in a very tight position at this point of time. Few partners are rotating the distributors money and misusing the credit facilities offered to them. Every dealer, especially in the upcountry region, must have clean records to obtain credit from the distributors. Else they will not be in a position to run the business at this time of financial crisis,” Talwar asserted.

After the Salem association came to know about the defaults, they called a meeting with both the partners and offered assistance to resolve the issue, which both the companies refused. After hearing repeated complaints, the association finally decided to suspend both the dealers on the grounds of disrupting the credibility of the entire partner community in Salem. “We felt that these issues can spoil the name of the entire market and dealers present in the region, hence we suspended both Sreeram Hi-Tech and VS Computers from the IT association. We have also recommended our partners not to give any credits to these companies,” informed D Rajamanickam, President, Salem IT Association.

When The DQ Week tried to contact Vairamudi of VS Computers, he was unreachable. On the other hand, Suresh Anbu of Sreeram Hi-Tech refuted the charges levied against him and his company. “We operate in Salem and Tiruchengode under the name of Sreeram Infotech, where the Tiruchengode branch is looked after by my partner Karthikeyan. The default case was filed against my partner for that branch and not against me or my company in Salem. I have a clean track record,” the partner claimed.

When asked about the suspension from the association, Anbu said that he was suspended on the basis of failing to produce certain documents while joining the association two years back. “I have clearly explained my status to the association that I am nowhere related to the default case. Just because my partner and I share the same company name, I am being victimized in the case. Everybody in the locality is aware of my track record. The association suspended me on the grounds of failing to provide necessary documents while joining the association and I have proof for my grounds of suspension,” he claimed.

He also said that he had heard from sources that his partner Karthikeyan had already paid nearly Rs 1.5 lakh to 3 lakh outstanding amount to Iris Computers and wasn't aware of any further details.