A Korean company took advance-payment but did not deliver the goods. This actually amounts to fraud.
Remedy available to Importer in India through DGFT
Here is the step-by-step process:
1. File a Complaint with DGFT (Online Module)
The Directorate General of Foreign Trade (DGFT) provides a free service to help Indian entities with international trade disputes.
- Visit the Portal: Go to the DGFT website (www.dgft.gov.in) > Services > File Quality/Trade Grievances.
- Submit Application: Fill in the Online Application Form under "File Quality Complaint / Trade Dispute".
- Select Jurisdiction: Select the appropriate Indian Mission Abroad (Republic of Korea) when filling in the form.
- Upload Documents: Upload relevant evidence in PDF format (maximum 5MB), including:
- Proforma Invoice / Purchase Order.
- Proof of advance payment (bank transfer documents).
- Correspondence with the Korean company (emails, chats) highlighting non-delivery.
- Unique Reference Number (URN): After submission, you will receive a URN starting with 'Q'. Use this URN in all future correspondence.
2. Make Use of Consulate Services (Indian Embassy in Seoul)
The Indian Mission in Korea handles trade disputes and can facilitate communication with local Korean authorities or the company.
- Email the Embassy: Report the fraud to the Commerce Wing of the Indian Embassy in Seoul at cons.seoul@mea.gov.in or hoc.seoul@mea.gov.in.
- Submit Complaint via MADAD: Register your grievance on the MADAD (Consular Grievances Monitoring System) portal at www.madad.gov.in.
- Attestation of Documents: If legal proceedings are initiated, you may need to get your documents notarized or verified. The Indian Consular Application Centre (ICAC) in Seoul handles these services.
- Attend 'Open Day': The Indian Embassy in Seoul holds an 'Open Day' on the last Friday of each month. You can pre-register by email to discuss specific, high-value cases.
3. Additional Measures for Fraud
Since the company has committed fraud, you should take concurrent legal actions:
- Report to Korean Law Enforcement: You may need to file a criminal complaint in South Korea. It is often recommended to contact a Korean law firm to file a complaint with the local police station (Police District Office) in the jurisdiction where the company is registered.
- Report to Indian Authorities: File a complaint with the Economic Offences Wing (EOW) of the local police and report the fraudulent entity to the Ministry of Corporate Affairs, India.
- Notify Your Bank: Immediately inform your bank about the fraudulent transaction and request they initiate a payment recall with the corresponding Korean bank.
Important Considerations
- Reciprocity: South Korea is not a "reciprocating territory" for enforcement of judgments in many scenarios, meaning an Indian court decree might require a new lawsuit in Korea. Therefore, bringing local Korean legal counsel and using the Embassy early is crucial.
- Be Persistent: Trade disputes involving foreign entities can take time. Monitor the status of your complaint on the DGFT portal via the 'Update Status' link