The alarming increase in the number of vanishing firms in the textile market of Surat, once the hub for textile industry in India has forced the state government into action.

On Wednesday, chief minister Narendra Modi ordered a probe by the state home department. The Surat city police also have been intimated by the home department and have been asked to act strictly with the law breakers.

Surat's textile industry is being plagued by various problems such as recession and overproduction for last one year.

To add to their worry, the flurry of vanishing textile firms have brought a permanent bad name to the entire industry. In the last six months alone at-least 40 to 50 textile firms have vanished, duping local traders and weavers to the tune of around Rs 100 crore (Rs 1 billion).

The Federation of Surat Textile Traders Associations made representations at various levels seeking action against vanishing firms.

FOSTTA had written a letter to chief minister Narendra Modi demanding action against the cheats in interest of textile industry. The federation representatives had also met Modi during his recent visit to the city.

The chief minister is learnt to have assured traders that necessary action would be taken against the dubious traders. A letter to this effect was sent to FOSTTA by the chief minister's office, in which Modi has assured that he would direct the state home ministry to take appropriate action.

FOSTTA vice president, Devkishan Manghani, said, "Yes, we have received such a letter and we are happy that our voice has finally been heard. We will, however, be pleased, only when some serious steps to protect the textile industry are initiated."