The Global Organic Textile Standard (GOTS) has banned five Indian companies into the business of cotton for using fake documents to defraud the GOTS system.
- GOTS found that the firms—three from Gujarat and two from Odisha—were showing fake shipping companies to show transportation of goods.
- None of the firms were currently certified.
- The ban was announced for two years on 2 October.
THE COMPANIES: The details released by GOTS revealed the following:
- Farmers United House and Om Organic Cotton Pvt Ltd (both Odisha): The Certification Body found clear evidence of using fake shipping companies to show transportation of goods and defrauding the GOTS system. Investigations revealed that the shipping company did not exist, and no material movement actually took place. Based on the facts despite the company not being currently certified, the Certification Body recommended a ban on this company. Second, based on a complaint received and investigations that followed, the company was found to have submitted forged NOP TCs for raw cotton with a QR code that led to a spoofed website that falsely confirmed the genuineness of these TCs.
- Super Cotton industries and Shree Dwarkadhish Corporation (both Gujarat): Based on routine review by the Global Standard Integrity unit, an investigation was carried out by the company’s Certification Body. The CB found clear evidence of using fake shipping companies to show transportation of goods and defrauding the GOTS system. Investigations revealed that the shipping company did not exist and no material movement actually took place. Based on the facts despite the company not being currently certified, the Certification Body recommended a certification ban on this company.
- Aama Cotton Pvt Ltd (Gujarat): During routine review by their certification body, discrepancies were observed in certain documentation. After further investigation, the certification body discovered that the company wilfully provided forged input Transaction Certificates with an intent to defraud the GOTS system. Based on their reviews, despite the company not being currently certified, the Certification Body recommended a certification ban on this company.
