The Hindu : Andhra Pradesh News : Fake IT companies con jobless youth

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Saturday, Jun 28, 2008
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Andhra Pradesh

Andhra Pradesh

Fake IT companies con jobless youth

Two ‘fly-by-night’ software companies dupe several jobless youngsters, writes Marri Ramu

If generation of thousands of jobs is brighter part of the IT sector boom, fraudsters floating fictitious IT companies and disappearing with money collected from jobless youths is the darker side of it.

With no mechanism-either from the Government or the industry side to regulate it, cheats are taking youngsters aspiring for careers in software and IT enabled services for a ride. In the past fortnight, two more alleged fly-by-night software companies duped several jobless youngsters, pointing at the need to evolve a system to check such companies. Hearich Solutions of Madhapur suddenly stopped its operations a few days ago. Their employees approached the police alleging that the company had collected Rs.80,000 to Rs.1,00,000 while recruiting them a couple of months ago.

After paying salaries for two months, the company owner suddenly went into hiding closing it.

More or less the same was the case of Crist Solutions of Narayanaguda though the amount involved was less. These are not isolated cases. Flouting fictitious companies, establishing offices in rented buildings, collecting money from job seekers on different pretexts like security deposit and disappearing after few days is the modus operandi by the fraudsters.Lured by the high salaries, several youngsters are seeking jobs in software companies. Qualified candidates have no problem because the best companies come forward to recruit them.

But candidates with average skills and degrees from disciplines other than computer sciences are falling easy preys to cheats.

Police officials maintain they have little control over floating of software companies and hence could not prevent such frauds. They believe if the candidates seeking career in IT sector adopt some precaution, these cheating cases could be brought down. Generally genuine companies don’t take security deposits like the firms formed by fraudsters did.

All that they insist is to sign a contract. Verify if the company is registered with the Software Technology Parks of India (STPI) of Hyderabad Software Exporters Association (HYSEA).

There are several firms not registered with these two organisations, but still doing well in their transactions. In those cases, consult persons already working in the field.

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