Excelsior Correspondent
SRINAGAR, Dec 14: The Federation of Chambers of Industries Kashmir (FCIK) today demanded the intervention of Chief Secretary, Atal Duloo to restrain Jammu and Kashmir Bank authorities from their corrosive actions against the defaulting business community, including MSMEs.
A spokesperson for FCIK mentioned that they had cautioned about the potential misunderstanding arising from these actions and their negative impact on the industrialization program. FCIK condemned the decision of the bank authorities to engage third-party agents for loan recovery and property attachment of business enterprises used as collateral security against their loans.
In a letter to the Chief Secretary, FCIK conveyed that, due to the distinct and peculiar situation leading to distress in the business community, a meaningful resolution to the issue of stressed and NPA accounts needs to be prioritized.
“This resolution should be arrived at through deliberations among bank authorities, the UT Government, and stakeholders. Until a resolution is achieved, the bank should be restrained from taking action against the defaulting units,” he said.
He said that the Chief Secretary was informed that Kashmir entrepreneurs were shocked on Wednesday when an agent of J&K Bank from Mohali, Punjab, sealed an industrial unit, M/s Pure Weave Designs Private Limited, at the Rangreth Industrial complex. The sealing also extended to the office complex of the enterprise at Nawpora, Srinagar, on behalf of J&K Bank. The spokesperson stated, “The agent, M/s GATS Reconstruction Company Mohali, is now contemplating take possession of other property of the entrepreneur, including his residential house.”
FCIK conveyed to the Chief Secretary that the action against the industrial unit had sent wrong signals and shivers across the business community, especially the industrial community. “In the past two years, the bank has initiated repressive actions, including intimidation and publicly defaming entrepreneurs, which were equally condemned by the people and business chambers,” he said.
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