Indian business robbing scheme from Bangladesh

[idune]

Indian Lilliput fails to pay $5m to Bangladeshi exporters by deadline

Jasim Uddin

A file photo shows workers are busy at a garment factory in Dhaka. Twenty-two apparel exporters are uncertain about getting their payment worth $5 million from India’s Lilliput Kids Wear Ltd against exports as the company had failed to pay the money by the June 30 deadline, exporters told New Age on Saturday. — New Age photo

Twenty-two apparel exporters are uncertain about getting their payment worth $5 million from India’s Lilliput Kids Wear Ltd against exports as the company had failed to pay the money by the June 30 deadline, exporters told New Age on Saturday.

‘The Lilliput offered to pay only 25 per cent of the total payment but the exporters refused it as the offer did not make it clear on how the remaining 75 per cent would be paid,’ said Fazlur Rahman, managing director of Gemini Garments Ltd, one of the 22 exporters.
Exporters were supposed to get their payment in October–November 2011 but Lilliput was delaying the payment and made a commitment to pay it by June 30, he said.

At the last moment, the debt-ridden Lilliput, the largest kidswear brand in India, came out with the proposal by breaching its commitment to make full payment which worried the exporters about the payment, exporters said.

In a proposal to the Bangladesh Garment Exporters and Manufacturers’ Association in the last week of June, Lilliput promised to pay 25 per cent of the total amount saying that the remaining 75 per cent would be adjusted later with further transactions through further business with the exporters.
Exporters rejected the proposal saying that Lilliput’s proposal meant that the company would make their payment after doing business with their money.

‘So it is impossible for the exporters to accept such a vague proposal without any bank-to-bank guarantee for payment,’ Fazlur Rahman said.

BGMEA vice-president Siddiqur Rahman said that an association delegation, headed by its director Arshad Jamal Dipu, was scheduled to go to India on Tuesday and the delegation would take up their demand and complaints against Lilliput with the Indian commerce secretary.

The exporters said that they would file a case with court in India against Lilliput seeking justice and demanding payment if any an amicable solution could not be reached through negotiations.
‘We have already talked with some Indian lawyers about filing a case,’ an exporter said.
They have also appealed to the Bangladesh Bank for blacklisting Lilliput for doing business in Bangladesh.

‘We do not want to lose such a big market like India but we also do not want to face further such fraudulence by any individual dishonest importer,’ said Moin Uddin Ahmed, managing director of Kent Fashion Ltd, one of the 22 exporters.

Exporters feared that they would default on bank loans and would become bankrupt amid shortage of working capital because of non-payment by the Indian company.
‘Banks are showing reluctance at doing business with us and they have stopped giving us banking facilities as we failed to repay loans,’ Fazlur Rahman said.

Lilliput owed Gemini $3.04 lakh which was supposed to be paid in October 2011, he said.
The other exporters are Mazkan Jeans Ltd, Vertex Apparels Ltd, Barat Sweater Ltd, A Plus Sweater, Sinha Fabrics Ltd, Anupam Fashions Ltd, Panshi Knit Pvt Ltd, Annesha Style Ltd, Hypoid Lingeries Ltd, Defoin Design Ltd, New Generation Fashion Ltd, Uttara Woven and Knit Ltd, DNS Sweaters Ltd, Ayesha Enterprise, IP Jack Knitting, T-Mart Computerised Sweater, Hallmark Designwear, Apparel Concept, Alif Garments and ND Apparels.

New Age | Newspaper

 

[hankau62]

Lilliput brand is dying in India due to mismanagement.
They are seeking debt-restructuring.

Why wasn't "Bank Letter of Credit" involved? that would have safe-guarded traders interest.

 

[funtoosh]

lilli[ut will pay lilliput sum of Rs 5/- to BD.

 

[idune]

Fraud Sahara's investment trap in Bangladesh
by News Desk
June 5, 2012

Securities and Exchange Board of India [SEBI] had instructed the mastermind of India's most controversial business conglomerate SAHARA GROUP to return US$ 3 billion to investors, which it collected by giving false promises as well as by violating the existing laws in India. According to information, in 2008, Sahara India Real Estate Corporation Limited, one of the enterprises of SAHARA GROUP started collecting fund from people by selling shares of Sahara Housing Investment. The name of this venture of collecting fund from the people was named as "Optionally Fully Convertible Debenture". As per Indian laws, selling shares under such programs are totally illegal. In 2010, when the illegal activities and unlawful method of collecting fund were traced, SEBI stopped the above enterprises of SAHARA GROUP from collecting fund from the innocent investors. Subara Roy Sahara, the mastermind of SAHARA GROUP went to Supreme Court challenging such decision of the Securities and Exchange Board of India, where he lost the legal battle and SEBI's decision and actions were found legal by the apex judiciary in India. But shrewd Subrata Roy Sahara did not stop here but he continued various legal efforts with the ulterior motive of salvaging his fraudulent projects. Finally the court verdicts went against Subrata Roy Sahara and his SAHARA GROUP, when on May 12, 2011 the Indian Supreme Court upheld the decision of Securities and Exchange Board of India and rejected the plea of Subrata Roy Sahara and his business enterprise. Meanwhile sensing severe legal consequences, Subrata Roy Sahara changed the name of his company from Sahara India Real Estate Corporation Limited to Sahara Community Services Corporation Limited.

Financial experts in India are comparing SAHARA GROUP as fraudulent MLM companies in Bangladesh. This Indian company has collected billions of dollars, similarly as Bangladeshi MLM Company Destiny Group and its enterprises. It is also learnt that SAHARA GROUP has been running illegal banking companies similarly as that of Destiny Group's Destiny Multipurpose Cooperative Society Limited.

After making such fraudulent activities in India, Sahara Groups has now stepped into Bangladesh by establishing business relations with one of the members of the "Special Family" in the country. Subrata Roy Sahara has already visited Bangladesh and sought lease of vacant lands from the government for the establishment of satellite city in Bangladesh. The newest venture of SAHARA GROUP in Bangladesh is named as Matribhumi Unnayan Corporation Limited [Motherland Development Corporation Limited], which is nothing but another scam of the notorious Subrata Roy Sahara. It is feared that in the name of establishing satellite city, Subrata Roy Sahara will be collecting billions of dollars from the Bangladeshi people and may finally disappear simply as those masterminds of Bangladeshi MLM Companies.

Commenting on SAHARA GROUP's investment proposal in Bangladesh, a leading real estate company CEO in Bangladesh said, "He [Subrata Roy Sahara] did not come to Bangladesh to invest but to loot public wealth by giving them false hopes of plots or apartments in their so-called satellite city. These are international racket of criminals and frauds and they must be stopped forthwith from befooling the innocent people."

Fraud Sahara's investment trap in Bangladesh :: Weekly Blitz

 

[scholseys]

As an owner of a garments factory i can tell all you guys that Bangladeshi garments industry do not want to export garments to India as they do not make any payments and their reputation sucks more than a hooker doing her job.

 

[Ammyy]

As an owner of a garments factory i can tell all you guys that Bangladeshi garments industry do not want to export garments to India as they do not make any payments and their reputation sucks more than a hooker doing her job.

So your dalal gov pressurized you to sell your products to Indian markets ????

Just think before making stupid comments

 

[joekrish]

As an owner of a garments factory i can tell all you guys that Bangladeshi garments industry do not want to export garments to India as they do not make any payments and their reputation sucks more than a hooker doing her job.

Any sain business man knows that there is a certain amount of risk involved in every business and a good business man covers his risk, the exporting company should have precured a letter of credit from the bank of the Indian company. On a lighter note the hooked turned out to be a guy and showed you his bolls after collecting your money, better luck next time.

 

[Bond]

As an owner of a garments factory i can tell all you guys that Bangladeshi garments industry do not want to export garments to India as they do not make any payments and their reputation sucks more than a hooker doing her job.

what a bunch of cry babies !!!

 

[idune]

Indian companies loot and call people who they robbing from "cry babies"? What a wonderful example of indian business practice and education and values.

 

[Ajaxpaul]

Indian companies loot and call people who they robbing from "cry babies"? What a wonderful example of indian business practice and education and values.

Because you guys are open to fraud.

Dont you guys know how to safeguard your business ? I guess not...

No use of crying in PDF.

 

[idune]

Fraudulent face of Pearl Fashion Institute exposed

June 30, 2011

Fraudulent activities of some foreign nationals in a so-called campus of a foreign university has been totally exposed as the executive director of Pearl Fashion Institute [PFI] in Dhaka confessed to Ekushey Television [a private TV channel] on June 29, 2011 that PFI does not have any permission from the authorities concerned in Bangladesh to operate any campus in Dhaka. Garima Shivastava, the executive director said "We are just like coaching center."

The fraudulent activities of PFI came into light when Weekly Blitz carried a number of investigative reports on this fake institution few weeks back. Following publication of the report in Weekly Blitz students and their guardian became extremely worried thinking this fraud institution has already spoiled lives of hundreds of innocent Bangladeshis in the name of degree from Nottingham Trent University in United Kingdom.

Meanwhile cheated students of Pearl Fashion Institute have filed a general diary with Gulshan Police Station on June 30, 2011 [GD Number 2442]. Sub inspector Masud Rahman has been assigned to investigate this issue. Sensing legal consequences, some of the foreign teachers of Pearl Fashion Institute are now secretly preparing to leave Bangladesh. It is also learnt that Garima Shivastava has hired some local goons, who are continuing to give threats to the students to refrain from any legal action against PFI. Garima is even trying somehow managing the situation by bribing the authorities concerned.

Professor A. K. Azad, chairman of University Grant Commission told reporters that, Pearl Fashion Institute is a fake entity and they are initiating action against it.

Dubious foreign enterprise, Pearl Fashion Institute has no permission from Bangladesh Bank [Foreign Exchange Department] for remitting huge amount of money to its head quarters in India. According to initial information, Pearl Fashion Institute [PFI] has collected TK. 380,000 from each of the students for 'degree' in Merchandising as well as in Fashion Designing. Currently there are approximately 270 students with PFI. So, till date, PFI has sent more than US$ 1.4 million to India through illegal channel.

Campus of PFI is located at road number 6 at Baridhara, where Malaysian High Commission, Embassy of Iran and Embassy of Brunei are situated. It could not be understood as to how this organization is allowed to open a campus right within the diplomatic enclave.

At the same time, PFI is running a full-fledged industrial unit inside the campus with at least 30 electrical sewing machines, cutting machines and other industrial equipment. The organization though is paying electricity bills as per commercial rates, according to existing rules, PFI should be charged under industrial tariff to pay its electricity and other utility bills. Through such means, Pearl Fashion Institute is directly evading millions of Taka each year and not paying Dhaka Electric Supply Company [DESCO], Dhaka WASA and Titas Gas, the real amount of bills.

It is also learnt that Indian nationals like Ms. Garima Shivastava, Ms. Shivani Sharma, Ms. Dhowani Khanna, Ms. Archana and Ms. Minakshi are working at Pearl Fashion Institute though most of them do not have any work permit issued by Bangladesh government for such full time employment with PFI. Academic backgrounds of these foreign nationals are also unclear.

On physical investigation of PFI, it was found that, the foreign nationals and Ms. Garima Shivastava, who is actually representing the owners of this institution are playing dilly-dally with the fate and future of hundreds of Bangladeshi students, by giving them the false impression that, PFI is an affiliated institution of Nottingham Trent University in United Kingdom.

It is also learnt that, Pearl Fashion Academy's branch in United Arab Emirates was forced to shut down, due to massive corruption and lack of any legal status. In India, Pearl Fashion Academy is considered to be a mere vocational training institute. But, in Bangladesh, PFI has been pretending to be a private university, by showing its connections with Nottingham Trent University.

Most importantly, Mr. Deepak Seth, who is chairman of Pearl Fashions Limited and Pearl Academy of Fashions is not shown to have any connection with PFI in Bangladesh on the website of PFL. Same things happen with Mr. AKG Nair, who also is the group director of Pearl Fashion Academy, but has no connections with PFI.

Though there is a button titled Senior Faculty Members on the website of Pearl Fashion Academy, there is no mention of any person in such category. It also evidently proves that, Pearl Fashion Academy is also another dubious institution. On the other hand, there is some names of individuals as members of Academic Board of PFA, whose educational details are no mentioned for reason unknown.

Bangladesh government should take immediate actions against Pearl Fashion Institute and recover millions of Taka they already have virtually looted from local students. Ministry of Home Affairs should block the frauds, which are operating PFI from leaving the country. It is learnt from dependable source that an influential MP of the ruling party has been assigned by PFI to salvage the foreigners working in PFI and to make an safe exit for them to leave Bangladesh.

Fraudulent face of Pearl Fashion Institute exposed :: Weekly Blitz

 

[idune]

Because you guys are open to fraud.

Dont you guys know how to safeguard your business ? I guess not...

So US did not know how to safeguard their business, indian committed fraud there, that is indian argument? Sheeh. Looks like indian businesses will commit fraud and indians will chest thump their robbery skill.

Rajat Gupta found guilty in insider trading case

Former Goldman Sachs director Rajat Gupta is convicted on securities fraud and conspiracy charges. He faces a maximum of 65 years in prison.

June 16, 2012|By Andrew Tangel, Los Angeles Times

NEW YORK — The federal government took down the biggest Wall Streeter yet in its battle against insider trading: Rajat Gupta, a former director of Goldman Sachs who once headed powerful consulting firm McKinsey & Co.

Gupta's conviction on securities fraud and conspiracy charges in federal court in Manhattan on Friday may embolden government efforts to weed out white-collar corruption using wiretaps, tools traditionally used against mobsters and gangsters.

Goldman Sachs' Rajat Gupta found guilty in insider trading case - Los Angeles Times

 

[scholseys]

Any sain business man knows that there is a certain amount of risk involved in every business and a good business man covers his risk, the exporting company should have precured a letter of credit from the bank of the Indian company. On a lighter note the hooked turned out to be a guy and showed you his bolls after collecting your money, better luck next time.

Couldn't care less just stating the market reputation of indian garments order. Only way i would do business with an indian is if the do a tt before hand as they are also known to forge lcs.i dont blame indian businessmen for it a if a fool from bangladesh goes in business knowing the rep of indians in this trade and gets screwed then i dont blame the ndians its all his fault.

 

[kumarkumar1867]

Lilliput Ltd. is under financial debacle due to mis-management, Ups & down are part of bussiness, no bussiness is free of rick factors involved, my BDeshi's friend forget how much money they make in past with exports to very same Lilliput Ltd.Their is a term called UNGRATEFULNESS, I think it suits to be used here.

lilliput will pay lilliput sum of Rs 5/- to BD.

 

[Chinese-Dragon]

what a bunch of cry babies !!!

What? He's right.

BBC News - India's Commonwealth Games bills still not paid

Ric's team worked like heroes. Their opening ceremony was a grand success and, as a giant helium balloon was launched into the Delhi night sky, 60,000 proud spectators bellowed out the national anthem.

So does Ric ever want to work here again? "No, absolutely not." "India," he says, "stands for I'll-Not-Do-It-Again."

The final straw for Ric is the fact that he still has not been paid. He says he is owed $350,000 (£225,000) and the Indian government has not told him why he has not received his money.

"They don't answer correspondence, they've changed their phone numbers, they've changed their email address," he told me. "It's a rogue action."

Ric is not the only one in this situation.

According to a list compiled by foreign governments, of the 32 international contractors employed to help run the Commonwealth games, only two have been paid in full.