Red flags that signal a fake Indian supplier — and what Iranian buyers should check before paying any advance. Verification, document checks, references and PSI.
Fake Indian suppliers are the single biggest risk for Iranian buyers sourcing from India. A polished website, a quick WhatsApp reply and a competitive quote are not verification — they are marketing. This article explains the red flags and the verification steps that protect Iranian buyers from fraud.
Why buy from India
India is one of Iran's largest trade partners for agro, packaging, textile, chemical and pharma products. The vast majority of Indian exporters are genuine. But a small minority of fake suppliers — intermediaries who claim to be manufacturers, virtual offices that claim to be factories, and outright fraudsters — target Iranian buyers because they know Iranian buyers cannot easily visit India in person.
Common challenges for Iranian importers
- Cannot visit Indian factories in person.
- Cannot verify Indian government portals easily.
- Cannot evaluate a sample from a distance.
- Cannot assess whether a "manufacturer" is actually a manufacturer.
- Pressure from "suppliers" to pay advance fast.
How Blueroute Exim helps
We provide a structured 8-point supplier verification service before any payment is made. We also work as the buyer's single-point India-side partner — the buyer deals with us (a verified merchant exporter), not with unknown manufacturers.
Red flags — walk away if you see these
### 1. Refuses to share IEC, GST, MSME copies Genuine exporters share these freely. A refusal is a hard red flag — walk away.
### 2. Insists on crypto or hawala payment Crypto and hawala are illegal for trade settlement in India. Any supplier pushing these is either a fraudster or operating illegally. Bank-compliant payment (TT, LC, rupee account) is the only safe route.
### 3. Quotes unusually low prices If a price is significantly below market, it is almost certainly a fraud. The supplier will collect the advance and disappear, or ship inferior goods. Compare prices with 2–3 verified suppliers.
### 4. Pressures for advance without a Proforma Invoice No PI = no payment. A genuine exporter issues a stamped, signed PI with HS code, country of origin, packaging, total value, Incoterm and validity before any payment.
### 5. Pushes for payment to a personal or third-party account Payment must go to the supplier's registered company bank account. Personal accounts or third-party companies are a serious red flag.
### 6. Refuses pre-shipment inspection Genuine exporters welcome PSI — it protects both parties. Refusal suggests the supplier is hiding quality issues.
### 7. Vague answers about the factory A genuine supplier can describe the factory, capacity, machinery and certifications in detail. Vague "we have a big factory" answers are a red flag.
### 8. "Manufacturer" who cannot show production If a supplier claims to be a manufacturer but cannot show a live video walkthrough of the production line, they are likely an intermediary. This is not necessarily fraud, but the buyer should know who they are really dealing with.
Verification steps — what to check before paying
### 1. IEC verification (DGFT portal) Verify the IEC at the DGFT portal. The legal name must match the supplier's claimed company name.
### 2. GST verification (gst.gov.in) Verify the GSTIN at the GST portal. Confirms legal entity, trade name, registered address. Active or suspended status is shown.
### 3. MSME / Udyam verification Verify the Udyam number. Confirms MSME registration.
### 4. MCA verification (for companies and LLPs) Verify at mca.gov.in. Confirms incorporation date, directors, registered office, filing status. Identify shell companies (recently incorporated, no filings, single director).
### 5. Factory address vs registered address Registered and factory addresses often differ. Ask for both. Check the factory address on Google Maps satellite view — is it a factory or a residential building?
### 6. Live video walkthrough Ask for a live video walkthrough of the production line, raw material store, finished goods store, lab (where applicable). Pre-recorded videos do not count.
### 7. References from past shipments Ask for references (without expecting buyer names). A genuine supplier can share category, destination port and shipped volume.
### 8. Sample and counter-sample Request a sample. For repeat orders, request a counter-sample produced to your spec. Compare to the bulk — they must match.
Step-by-step process
- 1**Identify the supplier** (or ask Blueroute Exim to source).
- 2**Run the 8-point verification** above.
- 3**Receive a structured verification report** with evidence.
- 4**Decide whether to proceed.**
- 5**If yes, issue PI and proceed with bank-compliant payment + PSI.**
Required documents (from the supplier)
- IEC copy.
- GST certificate.
- MSME / Udyam certificate.
- COA / lab test report (for food, pharma, chemicals).
- Product certifications (ISO, FSSAI, AYUSH, etc.).
- Redacted BL or shipping bill copy from a past shipment.
- Factory address and capacity declaration.
Payment — bank compliant only
- Advance TT.
- 50% advance + 50% before BL release.
- LC at sight.
- Rupee payment through permitted Iranian bank accounts.
No crypto. No hawala.
Quality assurance
- Supplier verification before any order.
- Sample approval before bulk production.
- Independent PSI on every shipment.
- Lab testing for food, pharma, chemicals.
- Stuffing photographs and seal numbers shared.
Why choose Blueroute Exim
- Structured 8-point verification process.
- Documented reports with evidence.
- Independent — we do not earn commission from any supplier.
- Bank-compliant payment only.
- Based in Surat, Gujarat — easy access to factories across India.
- Business hours: Monday to Friday, 10:00 AM – 5:30 PM IST.
- Contact: +91 93132 01754, info@bluerouteexim.in.
Key Takeaways
- IEC, GST, MSME and MCA can all be verified online — for free.
- Refusals, pressure tactics, crypto requests and below-cost pricing are red flags.
- Always use bank-compliant payment (TT, LC, rupee account).
- A merchant exporter reduces verification burden — but verify the merchant exporter too.
- Document everything in writing.
If you are unsure about a supplier, contact Blueroute Exim at info@bluerouteexim.in or +91 93132 01754 before paying any advance.
Frequently Asked Questions
How can I check if an Indian supplier is genuine?
Verify the IEC on the DGFT portal, GST on the GST portal, MSME on the Udyam portal, and MCA on the mca.gov.in portal. Cross-check that the legal name matches across all four. Request factory address, references, and a live video walkthrough of the production line.
What are the biggest red flags?
Refusing to share IEC / GST / MSME copies. Insisting on crypto or hawala payment. Quoting unusually low prices. Pressuring for advance without a PI. Refusing PSI. Pushing for payment to a personal or third-party account.
Is IndiaMART verification enough?
No. IndiaMART / TradeIndia / Alibaba are listings, not verifications. Use them to find suppliers, but verify independently before paying any advance. Many fake suppliers operate polished listings on these portals.
Should I pay 100% advance to a new supplier?
No. Use 50% advance + 50% before BL release, or LC at sight. For very small first orders, a small advance is acceptable with a verified supplier — but verify first.
Can Blueroute Exim verify a supplier I have already shortlisted?
Yes. Send us the supplier's name and any contact details. We run the full 8-point verification (IEC, GST, MSME, MCA, factory, capacity, certifications, references) and share a structured report.