The traders and garment makers from Ahemdabad are against each other over the matter of interest being charged on delayed payment. A claim has been made by the Masakti Mahajan who approached 2 of the garment manufacturers who are also members of the Gujarat Garment Manufacturers Association (GGMA).
The Mahajan constitution and billing system allows the fabric traders to charge interest is the payment is not done before the deadline. Whereas, the GGMA says that an interest cannot be charged with the cite of the state government’s recent drive against th illegal money-lenders.
According to Arvind Jalan, “I had supplied fabric worth around Rs.1 crore to 2 garment manufacturers. There is a payment condition on the bill and based on this, there will be a circulation made. Jalan has also circulated the clip which is related to the matter. The GGMA office bearers have released a video which states that the government will be running a drive against the characters with high interest and also demands interest for the delay in payments. Therefore, the GGMA will not be meditation for recovery of payments of fabric traders.
On the other hand, the association is not liable for the payment of interest of any trader. This will no be a responsibility. For this, Mahaskati Mahajan needs to help for the good faith but this cannot be an interest of recovery. According to Naresh Sharma, secretary of the Mahajan said, “ The issue has affected traders because delayed payments can hurt any trader in terms of working capital and cash flow. Also, we have seen many cheating cases and there are several buyers who will not pay on time if there is no interest condition. Garment manufacturers should take this into considerations”.
