Surat Textile Federation’s App Based Mechanism Receives Over 3000 Complaints of Payment Delays & Fraud Within One Month

Surat, May 22 (KNN) The Federation of Surat Trade and Textile Association (FOSTTA) announced Wednesday that its newly launched mobile application, FOSTTA FORUM, has received over 3,000 complaints within one month of its launch.

The application was designed to register complaints fr0m textile traders who have been defrauded or have outstanding payments fr0m buyers.

According to the complaints filed through the application, buyers have allegedly defaulted on payments totalling Rs 170 crore.

The association has responded to the volume of complaints by hiring 20 college students as telecallers, who will receive training to help resolve various issues faced by complainants.

FOSTTA launched the application approximately 30 days ago as part of efforts to address the persistent problem of fly-by-night firms that default on payments to textile industry participants.

The textile industry in Surat encompasses over 170 trading markets, with approximately 30,000 traders holding Goods and Services Tax Numbers (GSTN) and others operating without proper registration.

FOSTTA President Kailash Hakim explained that the textile industry suffers annual losses worth hundreds of crores due to firms that purchase finished and unfinished fabrics fr0m traders, weavers, embroidery unit owners, and dyeing and printing factory owners before defaulting on payments.

He noted that over 70 percent of such problematic firms originate fr0m other states, while the remainder are local operations.

To strengthen verification processes, FOSTTA has established partnerships with 146 textile markets across the country, enabling cross-verification of textile businessmen fr0m various cities and states.

The association is encouraging traders in these markets to download the FOSTTA FORUM application.

The application allows both registered and non-registered traders to submit complaints by providing their personal and firm details, including GSTN and address information.

Complainants must also submit details about the defaulting firm and owner, along with information about textile fabrics sold and outstanding payment amounts.

A practical example of the application's effectiveness involved textile factory owner Harsh Hakim, who received an order inquiry through a broker for grey bales of unprinted fabric.

After entering the potential buyer's information into the FOSTTA FORUM application, Hakim discovered three existing complaints regarding payment defaults filed against the buyer's firm by other Surat textile traders. This information led Hakim to cancel the order and report the buyer's details to FOSTTA.

FOSTTA's resolution process involves direct communication with firms alleged to have defaulted on payments, with approximately 80 percent of issues resolved through conversation.

Cases that cannot be resolved through discussion proceed to arbitration. Of the 3,000 complaints received in the first month, FOSTTA has resolved 20 cases and is actively working on approximately 300 others.

The 20 college students hired as telecallers will be compensated based on hours worked and will begin training Thursday.

Hakim noted that these students were selected after visits to various colleges and emphasized that defaulters typically prefer to settle matters mutually when contacted by FOSTTA.

The additional staff will enable the organization to address more pending complaints efficiently.

FOSTTA, which maintains approximately 1,100 registered members fr0m Surat, continues its awareness campaign to encourage textile traders throughout the city to register on the FOSTTA FORUM platform and consider association membership.

(KNN Bureau)