By K R Nambiar
Jupiter IT solutions, a Bangalore-based retailer has allegedly defaulted on credit payments to the tune of Rs 4 crore. An HP authorized partner with three retail stores in Bangalore, Jupiter's promoter Ravi Shankar is said to be absconding. Already a police case has been registered against the absconding owner.
Confirming the default, Mahendra Kumar, Director, Devraj Computers said, “From what we have heard, Jupiter has defaulted to the extent of Rs 4 crore. However, the amount he owes to distributors should be around Rs 1 crore to Rs 1.5 crore. The rest he owes to private financiers, from whom he had borrowed large amounts to invest in the stock markets.”
A source at Redington India confirmed that Jupiter had pending payments with the company, but refused to reveal the exact figure. “Our exposure is limited to a few lakhs, we are trying to locate the promoter of the company,” informed the source.
"What's concerning is that Jupiter was a recognized and reputed reseller in Bangalore. Shankar is also a known face in the reseller community. His downfall seems to be due to his over exposure to the stock markets. Many resellers, over the last 3-4 years, have invested heavily in stocks for the lure of higher returns. But with the markets tanking, they have lost even their principal amount. It's likely that we might see more such episodes coming to light and this could prove a major threat for the industry," said Dinesh Nair, General Manager, Sogo Computers.
Suresh Pansari, MD, Rashi Peripherals added, “Bad debts will increase as many resellers had invested big in real estate and stock markets and with the current credit squeeze, things could worsen. Bangalore is only the start, and more news is expected, and we need to take things in the stride. We are ensuring that resellers are carrying smaller stocks, and the pressure on them is reduced. We are also working with our principals on the inventories.” |