Lok Sabha Question No. 4444 (UNSTARRED), answered on 2019-07-19
Subject: Delayed Payments by HHEC
Ministry: TEXTILES
Asked by: Kunhalikutty P.K.

## LOK SABHA UNSTARRED QUESTION NO. 4444 TO BE ANSWERED ON 19.07.2019

## 'DELAYED PAYMENTS BY HHEC'

## 4444.  SHRI P.K. KUNHALIKUTTY:

Will the Minister of TEXTILES वस्त्र मंरी be pleased to state:

- a) whether the Government is ensuring greater facilitation for small businesses and entrepreneurs with the mantra Reform, Perform and Transform, if so the details thereof;
- b) whether the officers of Handicrafts and Handlooms Exports Corporation of India (HHEC) are acting against the said idea/concept and are harassing small bullion parties for blocking their payments for last five years and have not settled their outstanding dues;
- c) if so, details of payments due with up-to- date interest thereon and reasons for delay as on 31 March 2019 and the step being taken to clear the dues of such parties by HHECs ;
- d) the  steps  proposed  to  be  taken  by  the  Government  to  fix  responsibility  of  the  erring  officials  of  HHEC  for defaulting on payments to such entrepreneurs;
- e) whether in some cases the payments are contingent upon the outcome of investigation  of CBI  in 2018 and if so, the clarification received from them in the matter; and
- f) whether HHEC would release part or full payments of such parties where there is no case or enquiry pending and if not, reasons thereof ?

## उत्तर

## ANSWER वस्त्र मंरी ( श्रीमती स्मृ तत ज़ू बिन इरानी )

MINISTER OF TEXTILES (SMT. SMRITI ZUBIN IRANI)

(a) to (f): Central Bureau of Investigation (CBI) has registered two cases against the bullion parties of M/s Edelweiss Commodities Ltd. (ECL) and Aaryavart Commodities Pvt. Ltd. (ACPL). While HHEC has submitted that,  this  as  per  commercial  arrangement  and  as  per  business  module  adopted  by  others  bullion  importing nominated agencies, CBI is examining the issue of availing buyer's credit. Bullion parties whose payments have been withheld by (HHEC) have followed the process of imports as per agreements which are identical to the agreement  signed  between  ECL  and  HHEC.  HHEC  has  withheld  amount  of  ECL  against  which  CBI investigation is going on and other bullion parties with whom HHEC has identical agreement as signed with ECL, because any adverse decision in the CBI case with ECL will have financial implication on them as well. Further, HHEC has sought clarification from CBI with regard to withheld payment of bullion parties other than ECSL with whom HHEC has identical agreement as signed with ECSL. The CBI has been requested to clarify whether HHEC can release the payment of other bullion parties with whom HHEC has similar transactions. The response is still awaited from CBI. The  details of outstanding as on 31.3.2019 are as under:-

(Rs. In Crore)

| 1     | M/s Edelweiss Commodities Ltd. (ECL)                                        |   5.12 |
|-------|-----------------------------------------------------------------------------|--------|
| 2     | M/s SMC Comtrade Ltd.                                                       |   2.48 |
| 3     | M/s Atma Ram Amar Nath                                                      |   1.5  |
| 4     | M/s Frost International Ltd.                                                |   2.76 |
| 5     | M/s Kothari Product ltd.                                                    |   0.23 |
| 6     | M/s Relegare Bullion Ltd.                                                   |   0.16 |
| 7     | M/s Soni Chunilal Govindbhai Jewellers Pvt. Ltd.                            |   0.01 |
| 8     | M/s Delhi Spot Bullion Trading Co. Pvt. Ltd.                                |   0.03 |
| 9     | M/s Metlloy Trading Services (P) Ltd. (case pending with Customs Authority) |   0.11 |
| 10    | MMTCPamp India (P) Ltd                                                      |   0.05 |
| Total |                                                                             |  12.45 |

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