TAIT bans Shree Sai Traders

Mumbai: The Trade Association of Information Technology (TAIT) has advised its members not to conduct business with Shree Sai Traders, as it claims that the latter has been indulging in unhealthy business practices. Shree Sai Traders had purchased products below the market operating price (MOP) from Amit Seth of ABS Systems. It may be recalled that Seth is allegedly absconding since past six months after duping several of his business partners to the tune of Rs 1.75 crore. The case is now being investigated by the Economic Offense Wing (EOW).

According to Pravin Dhoka, Spokesperson, TAIT, Seth had sold goods below MOP to several channel partners in the city and after collecting funds from them, defaulted the payment of his suppliers and left Mumbai. Due to this, he owes his creditors Rs 1.75 crore. The case was brought to TAIT's notice as some of the suppliers are members of the association.

The association committee met on May 19 to discuss the issue, where it identified five of Seth's buyers who had bought the products below MOP. Since this practice does not advocate to its members, it decided to impose fines of these five buyers to dissuade other members from indulging in such practices in future.

Sources informed, under conditions of anonymity, that one of these buyers is a Mumbai-based computer vendor and another is a leading regional distributor. The same source informed that of the five buyers, two have paid the fine, while the other two are discussing with TAIT about the same.

Dhoka reported that despite discussing the payment of the fine with Vishal Jamadar, Proprietor, Shree Sai Traders, the latter refused to pay. This is why TAIT decided to take a strong step against it and yesterday sent a circular to all its members cautioning them not to transact any business with Shree Sai Traders.

The mail stated, “Anyone not observing the same will be working against TAIT, and the IT community along with TAIT reserves the right to take disciplinary action against them.” TAIT claimed that the decision was taken in the interest of community.

When contacted, Jamadar of Shree Sai Traders said that he has been operating in the Mumbai market for the past nine months and is new to the business. When contacted, he refused to comment on the issue and said, “I am seeking legal advice on the entire issue and will speak once I reach a conclusion.”