SITA bans founder member

DQW Bureau
30 Jun 2009
New Update


The Salem IT Association (SITA) has decided to ban its founder member, S

Dinakaramoorthy, Proprietor, Sree Jeeva Computer Systems, for financial

irregularities. It has also terminated his membership from the association for

defaulting on this payment. The association has asked dealers in the region not

to give any credit to the suspended dealer or have any business relationships

with him. “SITA learned that the dealer has applied for insolvency petition in

the Salem Court. We also learned that he has asked for police protection

claiming that there is a threat to his life from those people to whom he owes

money. Considering the fact that such unethical activities would damage the

dignity of the association, we had to take this extreme step,” informed P

Jagadeeswaran, Joint Secretary, SITA. He also said that all attempts to reach

the dealer for understanding the situation went futile as Dinakaramoorthy's

mobile was switched off. “He was the founder member of the association and we

wanted to understand his situation and lend a helping hand to him. However, he

remained unreachable for more than a week,” said Jagadeeswaran. When this

correspondent tried to get in touch with Dinakaramoorthy to get his side of this

story, he too was unsuccessful as the latter's mobile remained switched off.

Dinakaramoorthy is the third person to be terminated from the association. It

may be noted that the practice of banning defaulters from the region was started

a few months back with the ban on Vairamudi, Proprietor of VS Computers and A

Suresh Anbu and Karthikeyan, Proprietors of Sreeram Hi-Tech for defaulting on

payments worth Rs 8 lakh to Delh-based distributor Iris Computers. “We want to

create strong awareness among the channel community about payment defaults, as

no dealer can manage to loose any amount at this point of time. We want our

dealers to follow ethical trade practices, so that no channel member gets

affected in the future. The association also wouldn't remain silent if any

dealer involves himself in any activities that would damage the dignity of the

association,” he claimed.

Commenting on the action taken against the defaulter, E Elango, President,

SITA said that the association will look into such matters seriously. “Stringent

action should be taken on people who use such unethical business tactics and the

association did that immediately when we came to know about the issue,” Elango


N Nagendran, VP, SITA said that the association has brought in certain

regulations in terms of credit limits and payment terms within the association,

and they would be implementated soon.

Giving a brief on the new rules and regulations, S Prakash, CEO, Vashini

System Solutions and former President SITA, said that any defaulter within the

association would have to face the committee formed to look into the payment

default cases and would be ousted from the association as well as trade within

the region. “Payment is the most important thing today and we want our dealers

to enjoy the business and have minimal grievances. That was the main reason

behind the expulsion of the three partners from the association as well as

business. And anyone who follows these kinds of practices will have to face

stringent action from the association. These steps have become necessary at this

point of time,” Prakash claimed.