HCL resolves issues with PCDA

New Delhi

July 28, 2008

The Panipat Computer Dealers Association's (PCDA) decision to place a ban
on HCL Technologies, following its payment issues with a local dealer Harsh
Arora of MNS Computers has been revoked following mutual agreement between both
parties. Apparently, HCL had gotten a bailable arrest warrant issued against MNS
Computers through the Delhi High Court and notified the dealer that if he failed
to make a payment of Rs 30,994 on a Rs 18 lakh order or face imprisonment. PCDA
on the other hand sent a mail to HCL asking it to withdraw the case against the
dealer by July 21 or face a ban in Panipat, Kurukshetra and Karnal among other
regions.

Referring to this issue, Arora of MNS Computers stated that he had placed an
order worth Rs 18 lakh with HCL and had cleared all the payments. However, a
final payment worth Rs 4,81,000 was due from his end. After mutual understanding
and verbal communication with the legal representative at HCL, it was decided
that he would deduct Rs 30,994 as his incentive and pay the remaining amount.

“At the time of taking orders a dealer is supposed to submit blank cheques
to the distributor. I too had issued one for the following transaction. I had
cleared all my cheques when suddenly I learnt that they had dishonored one of my
cheques for a sum of Rs 4,81,000 (the amount for the final payment), that too
without serving any prior notice to me,” Arora stated.

Following this, Arora approached HCL only to learn that he has to make
payments towards the balance amount of Rs 30,994. “On consulting the legal
department at HCL they took Rs 1.5 lakh in cash from me and further asked me to
make a draft of Rs 3 lakh. Besides, they even reduced my commission amount and
asked me to deduct Rs 30,994 as commission instead of Rs 45,000 that I was
actually entitled to. However, despite clearing all their payments they did not
withdraw the case against me and are now asking me to clear the payments. Now
the company is not even giving me my share of incentive out of the Rs 18 lakh
transaction that I did for them and further issuing arrest warrants against me.
As a small dealer I don't have the muscle to fight with the company and hence
I approached PCDA to further look into the matter and support me.”

On the other hand, Mohit Chawala, Entity Head-Business North, HCL stated
that PCDA had sent them a couple of mails wherein they had asked HCL to withdraw
the case against MNS Computers or face a ban in Panipat and nearby regions.
Clarifying this he said, “The matter has now been sorted out and we have
withdrawn the case against the dealer. This issue cropped up because a certain
junior level executive within HCL who has now quit the company, extended a
commitment from his end to the dealer without keeping the higher authorities in
the loop. This week we will open a suspense account and will settle the over
riding commssion (ORC) payments that were demanded from the dealer so that he no
longer has to pay us.”

Ajay Singla, President, PCDA stated, “The matter has been resolved and we
will not ban HCL." He added that it was due to The DQ Week's intervention
into the matter that the company sorted the issue without much delay.