S Kumar Pune franchisees file complaint

Geeta Nair

Pune, Sept 20: A group of franchisees from Pune have complained against skumars.com Limited, the e-commerce venture of Vikas Kasliwal and the S.Kumar Group allegedly for failing to honour the agreement signed between the franchisees and skumar.com. The complaint letter has been sent to the commissioner of police and notice to the managing director of S Kumars.com by a group of 12 franchisees who are setting up an association to recover their investments.

S Kumars.com in a faxed respone (from Aloka Banerjee, head, marketing) claims that they were not aware of the complaint and had not received any legal notice from any of the franchisees based in Pune.

skumars.com had issued advertisements in February 2000 inviting franchisees for their e-commerce venture. Those having 50 sq ft of space, proficiency in the English language and ability of investing Rs two lakh were asked to apply. The company projected average monthly business or Rs 26,000 per month. Franchises had to make investments up to Rs two lakh. The company proposed to create a network using VSAT for providing e-commerce services.

During May 2001, the company informed franchisees that services were to be launched through the terestrial mode of connectivity. This the franchisees say is a breach of agreement because they have made the investments (some in part and others in full) towards equipment and trade advance. Some of the franchisees have not received the promised equipment. uThe VSAT installations too did not materialise, they complained.

The company claims that the process of dispatching equipment to all franchisees who have completed the requisite formalities has been completed. “However, in case there are any specific cases on non-receipt of particular equipment we would be glad to provided details on case-to-case basis”, the company says. The company statement adds that business on the network had already commenced through the teresterial mode of connectivity.

Business was done during Rakshabhandan and Ganapati festival. “A substantial number of our franchisees have requested to continue on the terrestrial mode of connectivity,” the company claims. However franchisees say this terrestrial service would involve expenditure on telephone, which was not part of the agreement.