Businesspeople from Rakhine State report that they are increasingly facing financial fraud while conducting business in India.
According to one Rakhine trader who personally experienced such fraud in India, most incidents occur during goods purchases and money transfers.
“The main problem here is financial fraud. When buying goods, we usually have to pay 50 percent of the value in advance. Business is supposed to be built on trust, but many people disappear after receiving the advance payment. Another issue happens with money transfers-when we transfer funds from this side, the person on the other end sometimes refuses to release the money and runs away. That’s how we are being cheated,” he explained.
The United League of Arakan/Arakan Army (ULA/AA) and the Arakan People’s Revolutionary Government have issued repeated warnings, urging Rakhine businesspeople not to make advance payments when purchasing goods in India. They also advise victims of fraud to seek assistance through their organizations.
However, Rakhine traders say it is difficult to follow these guidelines, since India’s trading system requires buyers to make a 50 percent advance payment on goods.
Sources close to the Arakan People’s Revolutionary Government noted that while the ULA/AA and the Arakan People’s Revolutionary Government attempt to mediate fraud cases, their effectiveness is limited. This is because the Indian government does not recognize them as an official authority.
A trader who once sought their help said:”They did try to intervene, but it wasn’t effective. The reason is that the Indian government does not officially recognize the ULA/AA or the Arakan People’s Revolutionary Government. They cannot pressure Indian authorities, so cases just disappear without resolution.”
Most Rakhine businesspeople working in India are those who have formally paid taxes to the ULA/AA and the Arakan People’s Revolutionary Government before leaving for work abroad. These businesspeople argue that since they contribute taxes, the ULA/ AA and the Arakan People’s Revolutionary Government should provide more effective protection and solutions when they encounter problems abroad.
