RCTA sides with Seatel as Creations cries foul

JAIPUR, RAJASTHAN: Rajasthan Computers Traders Association (RCTA) has come out in support of Seatel Electronics and Tinnu International in their ongoing spat with Creations.

According to the association it is in fact Creations which is harassing partners by refusing to pay their money and filing an FIR against them.

In a notice circulated to its members, RCTA stated, “This is to inform all members that RCTA has received complaints from some partners, mainly Seatel Electronics and Tinnu International, against Creations (The Laptop Shoppe) at Vaishali Nagar, Jaipur. Its proprietor Adesh Sant and his wife are not making payments against the material that has been supplied to them against proper bills, and he has given the cheques. Legal cases has been filed by the partners whose copies have been received by RCTA.“

As reported in The DQ Week last week Sant of Creations had filed an FIR against Pankaj Sharma, who is also the VP of RCTA, and Mukesh Jain of Seatel Electronics and Surbhi Electronics respectively, on charges of threatening and harassing him at his showroom at the night of Jan 13, 2009.

According to the FIR, Sant alleged that Sharma and Jain entered his showroom at night along with a group of eight to 10 people and threatened and misbehaved with his younger brother and wife.

Calling it a ‘fabricated FIR’, in its message, RCTA states that Creations has also indulged in payment default cases. RCTA has requested all its members not to deal with such parties who are involved in unethical trade practices.

“If it is found that some vendors, distributors or sub-distributors or even RCTA members are supporting such malicious, offensive parties against the common interest of RCTA members, rigid action may be taken against them,” states the notification by RCTA.

Commenting on the issue, Deepak Sharda, Secretary, RCTA said, “RCTA team, along with some senior members, is trying hard to resolve the police case of Seatel Electronics for which different levels of police and government authorities are being contacted. All the charges that have been framed against Seatel Electronics are false and it has been done so that Creations can get away without paying a sum of Rs 60 lakh, which is its current market outstanding. Once the police is through with the investigation we would come forward to take action against such practices in the market.”

Sharda also informed that distributors like Salora International and Neoteric are also facing the issue of payment default by Creations. Sharma from Seatel, on whom Creations has levied the charges, clarified that he would take any action in this case after the police department submits its report.

When contacted Sant of Creations stated that instead of the matter of payment defaults it is a case of insecurity that the dealers are facing because of the level of success that Creations has achieved within two years since the company entered into the market.

Giving an insight into the matter, an official from Creations clarified that the company was doing exclusive business of Dell with Seatel Electronics.

According to the MoU, on doing business of Rs 5 crore for Dell, Creations would earn a margin of eight percent. Out of eight percent, three percent would be paid at the time of buying the stock and the rest five percent would be paid after the completion of sale.

It is also reported that Seatel had to invest 10 percent of Rs 5 crore, that amounts to Rs 50 lakh, on Creations for capital back up.

“As per the agreement, Seatel was not supposed to ask for Rs 50 lakh refund. However, as the last quarter of December was slow, they asked for a payment of Rs 60 lakh which they had to further pay to Dell.

Gradually, Creations started getting frequent calls to make the payment and were finally threatened and harassed due to which Sant had to file the FIR,” informed sources.

The official from Creations further clarified that on being terrified with the threatening activities, the company had to take the issue to police.

“As far as Tinnu International, Neoteric and Salora are concerned, I have been making regular payments to them and if at one point in time payment is delayed, it should not spoil the reputation and overall relations with a company,” clarified Sant.

It is reported that police is expected to present a compiled investigation report in the next three to four days, till then the tussle in the Jaipur market continues.