TAIT initiates regulatory practices to combat fraud

DQW Bureau
16 Feb 2006

In the wake
of the recent series of frauds with the partners, Trade Associa­tion of
Information Techno­logy (TAIT), Mumbai, is planning to imbibe certain
regulatory practices.

To draw up a comprehen­sive
list of such practices, TAIT has already conducted around four meeting with its
members to seek out possible ways tackling this issue. One of the actions that
they have decided upon is that they will start educating the members about
business practices from the ground level.

Speaking about this,
Champakraj Gurjar, Chair­man, TAIT, said, “The main problem with the IT
industry lies in the fact that it is a very immature industry. Partners here
have not inherited the business from their ances­tors; in fact mostly all the
partners have started their businesses. For this reason, we think it is
necessary to educate the partners from the ground level about business

Besides this, TAIT is also
planning to introduce a special section at their website, where the details of
every new partner will be listed down. Gurjar said, “We would take down every
minute details of the new members and list them down at our website. This will
help the partners to identify the authentic dealers.”

Earlier TAIT had made
successive attempts to reduce the time for issuing credits. The association has
been issuing memorandums to its members and vendors to fix upon a specific
credit time limit. But after the recent frauds, TAIT now seems to be skeptical
on the entire process of issuing credits.

Gurjar said, “Actually
except in the IT industry, all the credits are taken care upon by banks. Anyways
IT is a dynamic industry, where the partners have to worry every moment about
phasing out of technology and they need to keep updating themselves. In such a
scenario, the uncer­tainty regarding the credits is an added headache.” He
also mentioned that the associa­tion is also planning to initiate some
practices, where banks can possibly take the responsibility of resolving the
credit issues with certain finance schemes.

Issuing credits in IT busi­ness
is common thing with the partners and vendors. But with the onset of successive
frauds in the market, the IT partners seem to question about this age-old


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