(MENAFN- KNN India)
New Delhi, Oct 17 (KNN) The Germany-based Global Organic Textile Standard (GOTS), which regulates the organic status of textiles worldwide, has banned five Indian cotton companies for two years after uncovering fraudulent activities.
The companies were found using fake shipping firms and manipulated documentation to falsely claim organic certification.
Two of the banned companies - Farmers United House and Om Organic Cotton Pvt Ltd - are based in Odisha. The remaining three - Super Cotton Industries, Shri Dwarakish Corporation, and Aama Cotton Pvt Ltd - operate from Gujarat. These firms have been barred from claiming GOTS organic certification until 2026.
GOTS disclosed in a statement that investigations revealed the shipping company used by the firms did not exist, meaning no real movement of goods took place.
The certification body found that forged National Organic Program (NOP) transaction certificates (TCs) were submitted by the Odisha-based companies, accompanied by fake QR codes linked to a spoofed website.
Further scrutiny found no evidence of actual procurement of raw cotton. Letis SA, an Argentina-based certifier, confirmed it does not work with Om Organic or Jampati Jevik Kisan Kalyan Samiti-the supplier claimed by Farmers United House.
Adding to the violations, the cotton was fraudulently reported to have been transported from Odisha to Maharashtra, covering around 800 km. Activist Liam Olive pointed out this was against GOTS policy, which prohibits organic raw cotton from being transported over 500 km.
The investigation revealed that staff members of IDFL, an accredited certifier, were allegedly bribed to issue transaction certificates without legitimate NOP input. Activist Olive claimed that companies manipulated transport documents, with no GST-compliant e-way bills being generated.
GOTS reported that Aama Cotton Pvt Ltd was involved in fabricating input transactions, further demonstrating systemic fraud.
This incident is not isolated. In September, GOTS banned four other Indian companies - Maruti Fibres, Axita Cotton Limited, Axita Industries Ltd, and Abhishek Organi Farms and Exports - for similar fraudulent practices, including stock manipulation and overselling.
GOTS emphasised that it thoroughly examined the facts before imposing the bans, reflecting its zero-tolerance approach to fraud in the organic textiles industry.
The bans underscore growing challenges in verifying organic textile claims as the demand for sustainable products rises, raising concerns about oversight in the rapidly expanding organic cotton trade.
(KNN Bureau)
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