As wholesale dispatches enter their final hours before the festive shutdown, payment security has taken centre stage across Surat’s Ring Road and Saroli textile markets. In late October 2026, Surat City Police tracked down and arrested outstation fraudsters from Thane and Mumbai who had swindled over ₹10 lakh in fabric stock from Saroli merchants by posing as legitimate wholesale stockists and issuing dishonoured checks.
The Annual Pre-Diwali Default Risk
The arrest highlights an annual hazard for Surat’s MSME fabric merchants. In the rush to liquidate festive inventory ahead of the 31 October logistics deadline, traders frequently release fabric rolls and finished sarees on short-term 15-to-30 day credit slips to unverified commission agents or first-time buyers.
Unscrupulous operators exploit the rush, collecting consignments under unregistered firm names, liquidating the goods at fire-sale rates in other states, and disappearing before markets reopen on Labh Pancham.
FOSTTA Dispute Cell and KYC Protocols
In response, the Federation of Surat Trade & Textile Associations (FOSTTA) has activated its emergency Trade Dispute & Arbitration Cell. FOSTTA President Hansraj Jain reiterated essential precautions for all market gaddis:
- Mandatory KYC on Outstation Consignments: Never dispatch goods to new buyers without verifying their active GSTIN status, trade license, and local association membership.
- Verified Transport Bilty Endorsements: Ensure the Lorry Receipt (LR / bilty) explicitly names the authenticated receiving firm, preventing unauthorized third-party parcel diversion at destination godowns.
- Caution Against Unregistered Brokers: Dealing through unverified street dalals (ringmen) removes association mediation rights in the event of default.
Surat Police have confirmed that dedicated economic offence desks will monitor transport dispatch points through Diwali to process complaints and prevent default absconding.