Trader bolts with Dh40m tea debt

A tea trader from Iran is allegedly absconding without paying for Dh40 million worth of tea he bought from dealers in Dubai to sell in other markets, Emirates Business has learnt.

Several traders whom he allegedly cheated said they were planning legal action and will approach various embassies and business chambers in key tea producing countries to prevent the erring trader from pulling the same fraud elsewhere.

The Iranian trader who owns a tea brand that operates in Iran and other GCC countries, has also been accused of violating long-term supply contracts.

Jalal Balala, Executive Director, Al Azizah Food Company, said many traders in the UAE are now finding it difficult to get finance as banks and wholesalers affected by the alleged fraud have tightened credit terms.END