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29 March 2024

Rice trader absconds after pocketing millions

Picture for illustrative purpose. The owner of a rice trading firm bought rice from suppliers for Dh110 per packet after issung dated cheques and resold it for about Dh80. (AFP)

Published
By VM Sathish

An owner of a rice trading company in Sharjah who bought commodities on credit, has disappeared after selling them for cheaper prices and pocketing the cash.

He allegedly issued dud cheques worth a few million dirhams to numerous suppliers, according to police officials.

Sharjah Police officials said: “He purchased rice from various suppliers at the rate of Dh110 per packet after issung them dated cheques. He later sold the rice for about Dh80, took the cash and vanished, leaving the suppliers in trouble."

“I have supplied him huge quantity of basmati rice and the payment was due last  week. But before the due date he has vanished from the market. His mobile phone  is switched off and there is no way I can contact him. Now I have filed a police  complaint," said one of the Indian suppliers.

Suppliers normally give 30 days to three months credit. However, most of them  have stopped this practice of late due to liquidity issues and similar cheating cases.

“Such dubious players are spoiling the market. Nobody is ready to give credit,"  the trader added.

Meanwhile, the Sharjah Police is preparing a list of suppliers affected.

“There are many cheque-bouncing cases involving this Indian rice trading company. The company’s office remains closed,” a police official said.

A few months back, a group of traders purchased products used in the electrical and construction industry on credit and resold them at throwaway prices before absconding.