Bruised Bankura faces payment defaults

With payment defaults on a rising spree in the east, Bankura has been the latest victim of the unscrupulous business practice with atleast 10% of the total market size reeling under the pressure of payment defaults.

Allegedly, three primary retailers in the region are said to be involved in the business malpractice with the local association, Bankura Computer Dealers Welfare Association (BCDWA) silent over the ongoing rage.

Shortly after a majority of dealers in Siliguri expressed their anguish about north Bengal poised to fall casualty to payment defaults, recently two major payment related incidents have been reported from the area.

"BCDWA cannot do anything until its members complain to us about their suffering (payment defaults) or an aggrieved party approaches us. I very well know about this issue but cannot step in until it is refered to us. As of now, only issues related to service and alleged harassment from Consumer Court officials has been reported", said Rajesh Jajodia, president, BCDWA.

The majority of the victims, however, are Kolkata based companies rather than local partners. In a recent incident, an alleged sum of Rs. 1.25 lakh was recovered from a local firm.

"To face this menace of payment defaults in a small region like Bankura, I urge dealers in the region to step forward and share their data with a centralised body like BCDWA which can keep a track record of the firms operating in the region. Whenever a new account (business proposal) is opened or a new partner appointment is under consideration, people can refer to the database and track record of partners before making any appointments", Jajodia added.

The root of the problem, as is the case with south Bengal and Kolkata is the factor of the rising pressure from distributors whereby, dealers are either forced to stock supplies or dealers fall prey to lucrative schemes. The remaining stock (both billed as well as unbilled) is then either discounted to a reseller in nearby region or with the easy terms of credit available, one withholds the payment of the sub-distributor or the distributor.

"Easy terms of credit and issuing it to partners without checking their profiles is the root of the problem. Only with a shared database with partner track records in place can we face the challenge", Jajodia elaborated.

The problem in the region is further aggravated as the ‘pressure tactics' often employed by local associations has been ineffective. In a recent case, an alleged dealer started paying a pending amount of Rs. 15,000 in instalments after reaching at a compromise, but alleged support from other dealers and especially non-members of BCDWA to the defaulting party resulted in the matter being aggravated.

"Legal recourse is also not a feasible option for us considering the market scenario and the time it takes to fight a case in the court. It is only when we do away with vested interest in the area can we have a good business environment in Bankura", Jajodia concluded.