Clarification Statement: Kantika Import Export and Trading Pvt. Ltd. on Misleading Reports
Introduction
In recent months, misleading reports and defamatory online content have been circulated regarding Kantika Import Export and Trading Pvt. Ltd. These materials, including certain media articles and a maliciously created website, have attempted to portray our company as fraudulent. Such portrayals are entirely inaccurate, based on half-truths, misrepresentations, and malicious intent.
As a responsible organization engaged in legitimate international trade, we believe it is our duty to provide a detailed clarification for our clients, partners, and the public. This statement presents the full background, factual timeline, and documentary basis of the situation, demonstrating clearly that Kantika Import Export and Trading Pvt. Ltd. has been a victim of fraud, not a perpetrator.
Background of the Transaction
Kantika Import Export and Trading Pvt. Ltd. is a registered Indian company engaged in lawful import and export of commodities. In 2023, our company entered into a commercial arrangement for the supply of sulphur granules from foreign manufacturers based in Turkey and Iran. The transaction was conducted through official banking channels, backed by a written sales agreement, and in full compliance with legal and regulatory requirements.
The value of the consignment was fixed at approximately USD 990,000 (₹8.31 crore). As part of this arrangement, an advance payment was made by our Indian buyer to our company, which in turn advanced a substantial sum—USD 833,100 (₹7 crore approx.)—to the overseas supplier. This payment was made in good faith, with the expectation of lawful delivery of goods.
Unfortunately, the overseas supplier engaged in fraudulent practices. Fake shipping documents, including a falsified Bill of Lading, were provided. The shipping company named on the documents did not exist, and the goods were never actually shipped. Our company discovered the fraud when representatives visited Bandar Abbas Port and found no trace of the alleged consignment.
Our Company as a Victim
It is important to emphasize that Kantika Import Export and Trading Pvt. Ltd. has itself suffered heavy losses due to this fraudulent scheme. The funds transferred overseas were not returned, and the goods were not delivered. In total, our company lost approximately ₹7 crore in this transaction, in addition to reputational damage caused by misleading portrayals in the media.
We did not benefit in any way from this transaction. Instead, we faced not only financial loss but also significant hardship in attempting to pursue legal remedies against the overseas supplier. Written complaints were filed with multiple authorities, including:
- The Director General of Foreign Trade (DGFT), Government of India.
- The Indian Embassy in Turkey.
- The Chamber of Commerce in Turkey.
These actions demonstrate clearly that we acted in good faith and made every possible effort to secure delivery of the goods.
Misrepresentation as Fraud
Despite these facts, certain articles and websites have portrayed the situation as if Kantika Import Export and Trading Pvt. Ltd. intentionally defrauded its buyer in India. This portrayal is false and misleading. The reality is:
- The transaction was backed by a valid written contract.
- Payments were advanced to the foreign supplier, not misappropriated.
- Complaints and follow-up actions were undertaken transparently with both Indian and foreign authorities.
- The delays and eventual failure of delivery were entirely due to the overseas supplier’s fraudulent conduct, not any wrongdoing on our part.
This is a clear case of a commercial dispute that belongs in civil/commercial forums, not in criminal proceedings. Portraying it as fraud committed by our company is a gross misrepresentation.
Security Cheques – Misunderstood and Misused
As part of goodwill and to reassure our buyer, our company issued two post-dated cheques of ₹1.5 crore each as security. These were never intended for immediate encashment but were given purely as a gesture of commitment while the overseas supplier issues were being resolved.
When presented, one cheque was dishonoured due to insufficient funds and the other due to a signature mismatch. This is often the case with security cheques, as they are not meant to be settled without prior consent. Unfortunately, these bounced cheques have been misrepresented as evidence of fraudulent intent, whereas they were only issued to provide assurance during a temporary commercial difficulty.
Procedural Irregularities in Investigation
Instead of pursuing civil remedies under the contract, our buyer chose to approach the police. Based on a one-sided version of events, a First Information Report (FIR) was lodged against our company under criminal sections of the Indian Penal Code.
However, serious procedural violations occurred during this process, including unlawful detention of individuals associated with our company before an FIR was even registered. These actions raise grave concerns about due process and the fairness of the investigation.
We firmly maintain that this matter is civil in nature and should have been resolved through arbitration, commercial courts, or civil remedies, rather than through criminal allegations.
Media Trial and Defamation
One of the most damaging aspects of this case has been the way in which certain media outlets presented the allegations. In particular, an article published in a leading newspaper presented the claims as if they were established facts, without mentioning that:
- The case is still under investigation.
- No court of law has declared our company guilty.
- Our company had filed multiple complaints with Indian and foreign authorities to secure the delivery of goods.
- The real fraud was committed against us by overseas suppliers, not by us against our buyer.
This one-sided reporting has directly harmed our reputation, misled clients, and caused immense hardship to our employees and their families.
Malicious Online Content
In addition to the media reports, a defamatory website was created to further damage our company’s reputation. This website falsely accuses Kantika Import Export and Trading Pvt. Ltd. of being a fraudulent enterprise, misrepresents our directors and family members, and even makes misleading claims about our office address.
It is important to clarify:
- Company Registration: Our directors and company registration details are fully compliant with Indian law. Use of family members in company structures is lawful and common practice in India.
- Office Address: Our use of a co-working office space is a standard business practice for import-export companies that operate across multiple locations and rely heavily on digital communication.
- Business Operations: All transactions were conducted transparently, through proper agreements and banking channels.
The intent behind the defamatory website is not to inform the public, but to harass our management, misrepresent facts, and cause reputational harm.
Our Commitment to Truth and Transparency
Despite these challenges, we remain committed to conducting our business lawfully, transparently, and ethically. Our company has:
- Filed official complaints and provided evidence to relevant authorities.
- Shared documentary proof, including agreements, banking records, and correspondence, with investigators.
- Cooperated fully with all official inquiries.
- Continued to communicate openly with clients and partners to maintain trust and confidence.
Why Clients Should Disregard Defamatory Content
We urge our valued clients and partners not to rely on misleading media articles or malicious websites that present a one-sided, defamatory version of events. The key reasons are:
- Ongoing Investigations: The matter is sub judice, and no final determination has been made by any court of law.
- Victim, Not Perpetrator: Documentary evidence shows that our company was itself defrauded by overseas suppliers.
- Civil Nature of Dispute: At worst, this is a commercial dispute, not criminal fraud.
- Defamatory Intent: Online content has been created with the sole purpose of harassing and damaging our reputation, not presenting facts.
Legal Action Initiated
To safeguard our company’s reputation and ensure that the truth prevails, Kantika Import Export and Trading Pvt. Ltd. has formally initiated legal proceedings in connection with the defamatory and misleading content circulated against the company.
A case bearing Case No. COMI/737/2025 has been duly filed before the Chief Judicial Magistrate, Gurugram on November 3, 2025.
This legal action underscores our commitment to upholding integrity, transparency, and justice through proper judicial channels.
Conclusion
Kantika Import Export and Trading Pvt. Ltd. categorically denies any allegation of fraudulent activity. On the contrary, we are the victims of fraud in this matter. We have suffered heavy financial and reputational losses due to the conduct of overseas suppliers, compounded by misrepresentation in media and defamatory online content.
We remain committed to full transparency, lawful business practices, and the highest standards of integrity. We encourage all clients, partners, and members of the public to seek clarification directly from us rather than relying on inaccurate third-party reports.
For supporting documentation or further clarification, please contact us through our official communication channels.
