Now Reading: UP traders seek regulator for cross-border fraud and payment disputes
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UP traders seek regulator for cross-border fraud and payment disputes
UP traders seek regulator for cross-border fraud and payment disputes
Traders in Uttar Pradesh have sought a dedicated regulatory body to handle foreign-trade fraud, payment defaults and cross-border commercial disputes. The demand follows losses blamed on overseas buyers, including a Kanpur trader’s…
The Story in Brief
Traders in Uttar Pradesh have sought a dedicated regulatory body to handle foreign-trade fraud, payment defaults and cross-border commercial disputes. The demand follows losses blamed on overseas buyers, including a Kanpur trader’s claim of losing more than Rs 25 lakh to a Bangladesh-based client. Traders also cited container theft at ports and payments held up in foreign banks.
The Hindu reports that traders want offices in major exporting states, with links to embassies, lawyers, police and intelligence agencies. A Uttar Pradesh police officer backed a two-way system that could also help foreign companies pursue serious disputes involving Indian businesses. Traders currently rely mainly on ECGC cover and letters of credit, but say recoveries can remain incomplete when buyers disappear.
The Indian Opinion
The claim that ECGC or letters of credit make exporters fully safe is too broad, while portraying every foreign buyer as a fraudster is equally careless. A new body could help coordinate cases, but it cannot replace due diligence, enforce foreign judgments everywhere or guarantee payment. Its value would depend on clear powers, response times and access to embassy support. The first test should be how many genuine claims it resolves, and how much money it recovers.
Source: thehindu.com
This story was synthesised by AI from the source linked above.
