Excelsior Correspondent
JAMMU, Dec 11: Continuing the drive to recover money from defaulters using stringent measures, J&K State Financial Corporation (SFC) today took over the property of M/s JK Premium Cements Works Pvt. Ltd, SIDCO Industrial Complex in Bari Brahmana.
The entire operation was launched under the guidance of MD, SFC, Rajesh Kumar Shavan.
A handout stated that the unit was financed by SFC in the year 1999 with financial assistance of Rs. 30.36 lakh for setting up a unit for manufacturing ordinary Portland cements/grinding of clinkers.
However after first tranche of loan was disbursed to the loanees account, the borrower initially committed default and the loan account turned NPA.
The SFC handout stated that since inception, the contentions of the borrower towards the repayment spirit dwindled considerably which brought about cataclysmic changes in the repayment schedule and with the incidence of default which was piling up substantially in the loan account to the tune of Rs.4.67 crore as on date.
The Corporation despite giving several chances to the borrower to clear the defaulted amount, further provided concessions in shape of settlement packages for realization of the entire balance but the borrower failed to fulfill the conditions governing the approved settlement packages of the Corporation.
“The Corporation was left with no alternative but to initiate legal action against the borrower under Section ’29’ of SFCs Act, 1951 for realizing the entire balance outstanding of Rs. 4.67 crore. The Corporation eventually ended up getting back the possession of the property of the unit,” the handout of SFC maintained.
It further stated that a number of seizure cases of defaulting units are in pipeline and the properties shall be put to open auction.
Meanwhile, in order to boost the lending spectrum of the Corporation, the SFC has lowered all the interest rates and also opened additional branch offices in the field.
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