Uttar Pradesh traders demands regulatory mechanism for the security of foreign trade amid frauds, payment failures

Uttar Pradesh traders on August 14, 2026, called for a regulatory mechanism to secure foreign trade, amid a rise in fraudulent activities. They proposed a regulatory body capable of aiding in cases of fraud, payment defaults, and cross-border commercial disputes. Traders shared their experiences of substantial losses due to defaulting foreign clients, container thefts at ports, and payments abruptly disappearing while the clients sought refuge.

India's exports and imports collectively amount to approximately 50% of the country's GDP, with many importers relying solely on limited tools like the Export Credit Guarantee Corporation of India (ECGC) and Bank Letters of Credit (L.C.). ECGC often collaborates with foreign lawyers to recover losses, but in some instances, the culprit manages to disappear, resulting in a total loss for businesses.

Vineet Singh, a Deputy Superintendent of Police, suggested that a dedicated department should be established in major exporting states to tackle such frauds and proposed a regulatory body with teams of legal experts, police officers, and officials from the Ministry of External Affairs, international trade, banking, insurance, and cross-border transactions.

This department should maintain direct communication with the Indian embassy, local law-enforcement authorities, and foreign counterparts to facilitate cooperation in investigating and resolving cross-border fraud and commercial disputes.