RCTA appeals to HP over Creations

In view of the ongoing issue with a Jaipur-based dealer, Creations, Rajasthan
Computer Traders Association (RCTA) is seeking clarifications from HP. Partners
allege that Creations has withheld payments to the tune of Rs 80 to 90 lakh, and
that Creations is carrying out advertisements of HP and Dell, offering 10
percent discounts on the brands.

According to a mail from RCTA, HP has assured the association that they will
look into the matter before taking any action.

The issue sparked off when RCTA learned that Adesh Sant, Proprietor of
Creations had published an advertisement in the local media for sale of HP and
Dell laptops in Jaipur. Channel partners in Jaipur have alleged that Creations
had several cases of default payments with several partners including Seatel
Electronics and Tinnu International a few months back, and the case has now been
taken up in court. RCTA has also noticed that Creations is continuing to do
business with vendors including HP and Dell, and is also offering 10 percent
discount on the sale of the products. The association has also raised objections
to the fact that one of HP's Delhi-based partners-Microclinic, has been
supplying HP business laptops to Creations.

Sharing further information, Deepak Sharda, Secretary, RCTA mentioned, “We
have raised the issue with both HP and Microclinic and have requested them to
stop supporting Creations. HP has assured us that they would look into the issue
and we are now awaiting action from the company.”

Sharda further claimed that Microclinc has come to an understanding with
Creations, whereby the Delhi-based partner is now recovering his money by
charging an extra amount (Rs 5,000) on every laptop thus sold to Creations.
However, this is hampering trade and spoiling the market. “We want Microclinic
to support us in our cause to promote healthy business. We are not here to guide
the vendor as to who they should do business with but we can always caution
them.”

Apparently, Microclinic has suffered loses to the tune of Rs 80 lacs while
dealing with Jaipur partners. However, according to the association they are
unaware of any such payment defaults.

Clarifying further Sharda added, “We have not received any formal complaint
from Microclinic and even the former Secretary (Arinjay Jain) did not receive
any complaint during his tenure. The manner in which Microclinic is trying to
recover its money will put other genuine partners in the city in trouble.”

On the other hand Tarun Seth, CEO, Microclinic opined, “We have nothing for
or against Creations and since they have been paying us on time, we are billing
the material to them. This is a free market and the association cannot guide us
on how to go about pursuing our business.”

When asked whether HP had approached the company and directed them to stop
billing Creations, Seth reiterated, “HP has given us no such instructions and
RCTA is only trying to raise an unnecessary issue.”

In an e-mail sent to RCTA, HP has agreed to take note of the ongoing issue.
The mail further stated, “Thanks for bringing this issue to our notice. Give us
some time to discuss this with Microclinic and then revert back to you. Our
Channel Manager-Shailesh, will revert to you once we understand the details of
the case through our local team and Microclinic.”