Nafed forfeits our Rs 1 crore

nafedWe would like to introduce our self M/s Vinay Industries Ltd, biggest export house for export of Groundnut Oil. M/s Vinay Industries has been awarded as India’s Largest Exporter for consecutive two year by IOPEPC. M/s Vinay industries Ltd being biggest Groundnut Oil export house, we procure raw material from various Government Institutions as well as from trade / farmers.

We have purchased Groundnut from Nafed Ahmedabad and Sriganganagar Branch in bulk quantity about 11000 Mts and 15000 Mts from SFAC in current year.

With reference to the subject We have entered in to contract to purchase groundnut by negotiation on 21.11.2014 vide SCL NO.260,261 and SCL NO.275 on 22.11.2014  and as per this contract we have to make entire payment within 30days, initially we have deposited as sum of Rs.10000086/- by NEFT and remaining amount of contract was require to pay as per tender terms within 30day but due to some unavoidable business circumstance we have to make a request by our letter dated.20.12.2014 for granting extension of 20day which was send through email on 20.12.2014 but then after there was not any comply or reply of our request letter from NAFED Ahemedabad Branch, also after request for 20 day extend email we have done one payment of “Lime Food, veraval” vide SCL No.260 on 23.12.2014 and NAFED have already issue D.O for same without any objection, also from trade it has been gathered that extension of time period for deposit of payment has been granted by NAFED Ahmedabad to other buyer, so we mutually feel you have granted 20 day extension.

After that we have done payment of SCL NO.275 on 31.12.2014 in morning but after noon we have receive letter of forfeiture of 10% Security Deposit and terminate of SCL No 261 & 275, although they have not issue D.O of SCL No.275 after all we have done remaining all payment of SCL No.261 on 06.01.2015 & 09.01.2015, So here we have done all payment within extended payment time line and fulfill our responsibility and liabilities toward NAFED

We are trying since that for waive our forfeit amount and continue contract till date but we could not receive any information in this regard and NAFED Ahemedabad has return back our all deposited amount.

We have many request that it is perishable goods and it’s life shell is near to expiry, So there is further delay will increase our burden of quality loses, interest cost, godown rent, labour cost and penalty of late shipment of export but we have no any response from you, after that we have again request on 19.01.2015 for issue D.O on penalty interest charges as well as waive 0.3% discount which is offer  to us as big buyer, although not any response beside that NAFED Ahmedabad has declare the tender on 20.01.2015 of our contracted goods.

So we have send Letter in the form of legal notice to the prevent the re-tendering procedure of the sale of contracted goods “Groundnut” but again next day NAFED Ahmedabad has declare the tender.

In this regard to avoid any legal controversy we have send letter for renegotiation/retendering on 21.01.2015 and We are ready to re-bargaining /renegotiated at market prevailing rate for entire stock of NAFED Ahemedabad Branch including stock of Porbander against adjust our 10% security deposited which is lying with NAFED, although no any response from NAFED.

So here we have done all effort to clear the matter but NAFED IS not ready to convince in any way.

At last they have sold our contracted goods on 23.01.2015 by re tending to other party due to that we have loss of 1 crore deposit and 2 crore price different and we can’t fulfill of our export obligation.

So please help to us and guide what we do to get justice

We are looking forward your favourable reply


Vijay Domadia

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Comments ( 4 )

  1. vimal patel

    Dear Sir

    This is out of obligation of cooperative sector. Cooperative sector mean help to each other and grow together but here this obligation is not fulfil by NAFED, in every big deal so many obstacle. And some obstacle are out of our control which is destroy smooth cycle. This is naturally and it’s happen with every one after care lot of thing.

    Same way Vinay Industries has delay to payment due to some business obstacle but done all payment within demanded extension period. Also they have present different proposal like waive 0.3% discount,penalty interest, re-bargaining at present market rate to clear the matter then why NAFED has not any response.

    This is not fair in any business and it is like die to customer.

    So please give support to Vinay Industries Ltd to recover his loses


  2. Sharif Kachha

    This is really out of business manner, if we will not understand each other in business then no one can sustain in market, In every business deposit is taken for security purpose if buyer is fail to fulfill business but here there is not any issue of default then why NAFED has forfeit deposit, This is not practice of cooperative sector. this is really worst attitude toward customer.

  3. Abdul Rauf

    In any Business, Every Situation is not controllable, by any businessman, there are some Plus minus,
    So here delay in payment by some few days, they cannot give punishment by forfeiting full Deposit & Contract, If they want to give they can give Interest Penalty, etc, They have to boost manufacturing in india, but by creating obstacle they de boost small manufactures growth.

  4. Bhavin

    This case is clearly like water, Here buyer seriously want to continue his contract and they have deposited all payment then there is not any matter of forfeit or cancel the contract. So in this case NAFED has must cooperative with Vinay Industries because NAFED is cooperative institute and his main aim is help to other and build better world then why taken this step, if you kill your customer then how to sustain in market.

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