Telugu associations risking reputation and embarrassment from illegal activities of Jewelers from India.
With the explosive growth of Telugu population in US over the last 2 decades, in some large Metro areas of Bay area, Chicago, Detroit, Virginia, New Jersey, sometimes it feels like we are back home in India among our people.
There has been a flurry of social events and activities catering to the Telugu community and other Indian non-profit associations that promote our native languages, culture, movies and charitable activities. Among these are many that sponsor and carryout commendable charitable activities like medical camps, educational support to the weaker sections, village development and such in India.
The founders, active members, donors and volunteers of these organizations put in a lot of their resources and precious time in managing and executing these activities.
It would be unfair, if the effort, management and organizational skill required to pull off some of the mega conventions is not mentioned or appreciated. Also is the amount of the financial burden these organizer take upon themselves in arranging these convention.
Most of us have trouble finding a decent hotel for a decent price for a few nights, while these guys are planning and executing multi-million dollar events and pulling together thousands of families, so we can spend a few good moments and reconnect with friends and family members with whom we might have lost touch.
On the cultural end, these events give us an opportunity to reconnect with our culture and more importantly give us an opportunity to expose our children to our heredity. I cannot thank enough, these excellent men and women who I am proud to call my friends and family to give this opportunity to our community in general to get together, enjoy and experience happiness in a new land.
Chicago, Detroit, Atlanta, Raleigh to name a few cities have sub chapters of national organizations or independent organizations and over the past few years have put together impressive events. Ladies nights have been very popular and well executed.
With the growing affluence of Indian community in US and their ability to spend a few business sectors, especially Real Estate and Luxury Jewelry from India are looking to expand into the US market for the past decade or more.
The enthusiasm of Indian businesses to reach out to Indian community in the US has been very high in the recent past, probably hitting an all-time high when there were almost 20 jewelers exhibiting at one of these conventions recently.
Unfortunately our brethren from India not only bring the goods and opportunities to us in the US but also bring the underhanded way of operating. There is a heightened level scrutiny at US Customs, Immigration department and State revenue departments. It is heard on the grape wine that recently an employee of a popular Jeweler was strip searched at port of entry and was almost deported.
Businesses coming from India either out of ignorance or sheer lack of respect to the laws of the land grossly violate basic laws and create trouble for themselves and the community in general.
The most common violations that occur include, immigration violations, importing goods illegally without proper disclosures and declarations, lack of business license, lack of reseller permits and fulfilling sales tax obligations to the state where they conduct business. For many this is business as usual.
Times are changing and business involved in these kind of activities are in high probability of being caught.
Not only are they exposing themselves to serious legal exposure, they are exposing the organizers of the events also to financial and legal risk. In some states as per the state law unless the contract between the organizer and exhibitor (vendor) is worded in a certain way, the organizer becomes liable to report and pay sales tax on behalf of all sales that occur at the event.
There is a high probability that one or more of the above mentioned departments might swoop down at any of these events. A raid of that nature where uniformed men in marked and unmarked vehicles show up at a community convention and book cases will damage the reputation of the organizers and entire community.
Organizers of these events should protect themselves by making sure that the vendors are complying with local and federal laws or at least make sure such clauses are included in the agreements and a person based in the US is signing such agreements, so that should there be a breach someone could be held accountable.
In the current circumstances it is very important for the organizers to have legal counsel draft their agreements.
Pratik Shah
[email protected]
