Surat's textile markets are getting negatively affected because of defaulters from Madhya Pradesh, Rajasthan, Uttar Pradesh and Bihar. Defaults worth over Rs 700 crores have been reported from these markets in the last five months. Industry insiders point out that almost 20 to 25 cases of defaults are being reported every month.

Their modus operandi involves renting shops at the textile markets under fake names, identity proofs and residential addresses, followed by placing huge orders after making first three payments on time and then disappearing seeking credit of four months. And when the victims lodge police complaints or approach Federation of Surat Textile Traders' Association (FOSTTA), there is not much, they are able to do since the people cannot be traced due fake identities.

According to Chairman of textile committee of Southern Gujarat Chamber of Commerce and Industry (SGCCI), Devkishan Manghani, "There are over 165 textile markets housing more than 65,000 textile shops. Each market has been given the printed forms to be filled by those taking shops on rent. It is the responsibility of the textile markets and the shop owners to verify the details."

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