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CMAI restructures payment default committee

By Sujata Sachdeva

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Clothing Manufacturers Association of India (CMAI) has taken on itself to deal with incidences of payment default by retailers. CMAI has put in place its ‘Payment Default Committee’ for the Mumbai region. The Payment Default Committee will have two sub-committees. First, comprising 14 members and the second, will have 90 members. The former is devised to oversee and guide the latter.

“This is a first-of-its kind formation and more specifically, only for Mumbai city. The plan is to implement the same mechanism on a pan-India basis. Through this, we are looking at settling existing disputes by putting an embargo on defaulter retailers/agents. Also, efforts are being made to put a check on this grave practice,” explains Rajesh Masand, Vice President, CMAI. According to the association’s estimate, manufacturers have about Rs 1,200 to 1,500 crores stuck in the market.

All registered manufacturers seeking redress will have to fill the complaint form provided by the association along with Rs 500 initially. Unlike earlier, 1 percent of the total amount recovered will be charged after the settlement. As a preventive measure, the association has issued guidelines by which before making a deal with new parties manufactures will have to fill up the reference form available on CMAI’s website.

CMAI