Excelsior Correspondent
SRINAGAR, Dec 13: The Federation of Chambers of Industries (FCIK) today said that it will launch a protest campaign to challenge “harassment” and “intimidation tactics” employed by J&K Bank against borrowers.
In a statement issued here, FCIK said that these borrowers, through no fault of their own, “are struggling to meet their debt obligations due to unavoidable circumstances.”
This decision follows extensive discussions among industry leaders from across Kashmir, including Presidents and representatives of organized industrial estates, district unorganized sectors, and various lines of activity.
“The discussions were prompted by the ongoing harassment faced by borrowers, which includes the issuance of SARFAESI notices, possession notices, e-auction notices, and the bank’s persistent efforts to obtain eviction orders from courts, seeking to forcibly displace borrowers from their business premises and mortgaged properties, most of which are their homes,” FCIK said.
The protest program being formulated aims to expose the bank’s exploitative practices, FCIK said.
“It will include organizing peaceful sit-in protests at industrial estates and district headquarters, holding press conferences, and pushing for intervention from both local and union governments, as well as the Reserve Bank of India,” it said.
Industry leaders also highlighted that accounts of Micro, Small, and Medium Enterprises (MSMEs) and other borrowers are being classified as Non-Performing Assets (NPAs) due to a failure to service debt, specifically missing interest payments or monthly installments for three consecutive months.
“The bank has shown a complete disregard for the unique challenges faced by businesses in the Kashmir Valley, especially over the past three decades, when local enterprises have been impacted by natural calamities,” the FCIK said.
Notably, during the 2014 floods, when the bank itself was severely affected and unable to provide services for nearly two months, it did not offer any concessions on interest charges, the apex trade body said.
Industry leaders have also raised concerns about the bank’s consistent practice of charging exorbitant interest rates, 4% to 5% higher than the rates charged by banks in other states.
“The bank has also routinely demanded additional layers of securities and guarantees beyond the primary collateral, a practice viewed as exploitative and contrary to regulatory norms.”
They urged the Advisory Committee of FCIK to take a leadership role in the protest program on behalf of the business community.
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