China Wednesday denied that an Indian diplomat who fainted while accompanying two Indians at a business dispute in a court in Yiwu, Zhejiang Province, had been harassed.

Indian media reported recently that an official from the Indian Consulate General in Shanghai collapsed after being "denied food and medicines" and "manhandled" when negotiating to free two Indian businessmen at a court Saturday in Yiwu.

"The reports did not tally with the facts," Hong Lei, spokesman of the Ministry of Foreign Affairs, said at the press conference Wednesday, adding that the dispute is under further investigation.

The reports distorted the facts, and no injuries actually happened, an official with the local government said to the Global Times on condition of anonymity Wednesday.

The two Indians refused to pay more than 10 million yuan ($1.59 million) for goods they had received, according to the source.

"During the interval at the hearing, the diplomat planned to take away the two Indians secretly under the pretense of going to the toilet. But they were stopped by suppliers at the court's exit," the source said.

When the officials arrived, they found the diplomat sitting on the ground and claiming that he had been beaten. But physical checks afterwards showed no signs of a beating, according to the source.

"China protects the rights and interests of foreigners doing legitimate business. A hotel has been arranged for the two Indians, and their security is being handled by local police," said Hong.

Lou Zhongping, chairman of the Household Articles Chamber of Commerce with the China Commodity City of Yiwu, said scams involving not paying for goods after they are received are not rare.

"Many suppliers are cautious about that and are discussing measures to prevent and punish those swindlers," Lou told the Global Times Wednesday.

In early December, an Indian citizen fled to India without paying 16 million yuan to 145 goods suppliers in Yiwu. In another case, two Indians took away goods valued at 2.8 million yuan without payment.

India's main opposition Bharatiya Janata Party Wednesday expressed their condemnation and demanded a thorough inquiry into the incident.

On Tuesday, the Indian embassy in China issued a notice on its website warning Indian traders and businessmen not to do business in Yiwu.

"Such warnings are not rational. Neither side wished to see unpleasant incidents. I hope India deals with the case with a calmer and wiser attitude," Ma Jiali, an expert on Indian issues from the China Institutes of Contemporary International Relations, told the Global Times.

Ranesh, an official with the Indian Chamber of Commerce in Yiwu, said the business environment in the city is good and he would like to stay there.

"The case needs to be settled through dialogues and under rules, rather than upgrading it to political or diplomatic level," Ranesh told the Global Times.

Yiwu, home to China's largest commodity market, has attracted about 130,000 foreign businessmen, including 5,000 from South Korea and over 100 from India, according to the Overseas Chinese and Foreign Affairs Office of Yiwu.

"There is little concern that the scandal will deter other traders from coming to the city with its potential opportunities and good services. Besides, we have been making efforts to improve the market and living environment," Gong Ximing, an official with the office, told the Global Times Wednesday, noting that a new center offering one-stop services for all foreign traders and businessmen opened Wednesday in Yiwu.

The two Indian businessmen have alreadly left China, local officials said.