We have purchased machinery worth of 10lakh by Vahavanivati machine tools ahamadbad.
Company managed by Vikas.
1)this company will not manufacture any machine.
2)As per our p.o we told him that we will give 10% amount after machine instillation, but he was agree, so we paid full amount now he is not agreeing for free installation.
3)When we try to contact he is not taking our calls and blocked our numbers.
4)He has not given is motors and some parts?
5)We personally went and loaded the machinery, when it reached we come to know he has not given some parts and used 2nd hand motors.
We alreay mailed him that we will take legal action.
In his web site he will advertise that he will manufacture and supply the machine. but actually he will only supply the machines.
Please help what next step we should take.

From India, Bangalore
Dinesh Divekar
Business Mentor, Consultant And Trainer
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The actions of the company amounts to cheating.
Section 420 will be applicable here.
Both civil and criminal liability is evident in what the company has done/failed to do.
Do not wait initiate legal action straightaway taking advice from a competent lawyer.

From India, Pune
Dinesh Divekar

Dear Anil,

I conduct the training programmes in the field of Purchase and Inventory Management. One of the programmes in this category is "Vendor Management". Yours is a classic example of failure of vendor evaluation.

Before taking vendor on board, you should have developed well-defined check list. You should have evaluated the vendor as per the check-list. Secondly, you should have done reference check also.

Before giving any suggestions, we need to know the terms mentioned in the Purchase Order (PO). Secondly, I am surprised at the 100% advance payment. No company ever agree for this. How come your company agreed for this condition is a great surprise.

In the meanwhile, you may approach a lawyer who handles cases of Indian Contract Act, 1872. This case falls under the purview of this act. Find out what lawyer says.

I have checked the website of that vendor. It is ISO certified company. I recommend you approaching the agency that has certified them. Provide them the complete facts. Let us see whether they can revoke ISO certification.

Last Note: - What I am writing is little gratuitous. However, it is worth mentioning. The quality of your post is quite inferior. You need to improve your English. If you wish to grow in your career then command over English is must. Be sure that for the lack of command over English, you are bound to lose some business.


Dinesh Divekar

From India, Bangalore

A prudent buyer, especially a firm/corporate should carefully draft the P.O. to safe guard their interest rather than depend highly on oral assurances, misleading show biz. You should have made the selection only after ascertaining credit worthiness past performance of the supplier. Particularly the payment terms, installation, commission, guarantee & warrantee clauses, record of supplies received etc. It's evident you have been cheated by them. Having paid 100% of the cost and still not put to use you are bound to lose very heavily, you are not able to keep up your supply commitments etc. Normally any advance payment should be made only on the basis of a Bank guarantee against a Performance guarantee. Much would depend on the terms & conditions of your PO and the records in your possession about the qly & qty/condition of supplies received. What is possible now is You should immediately hand over the case to an eminent advocate and issue a legal notice (may be after issuing your own regd. notice) file suit for recovery, liquidated damages etc. Simultaneously file a FIR u/s 420 and other applicable sections (though police might argue it's a civil case) and keep guessing what you can retrieve from this. But nothing could be assured since the supplier is not appear to be following business ethics seriously.

I doubt very much about the possibility of ISO's help in this as, so far as I know, ISO agency does not certify the credit worthiness of the awardees. However a complaint to them, with documentary evidences, might help them in the course of next ISO audit, I'm not sure.

From India, Bangalore

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