Rs 40.63 cr loan default by Housing Corp referred to ACB

ZT News Network

SRINAGAR: Jammu & Kashmir administration in a significant decision has come up with a number of measures aimed to streamline J&K Housing Corporation to HUDCO, an official statement said today.

The decision comes in the backdrop of a default on Rs. 40.63 Crore loan by the J&K Housing Corporation to HUDCO, wherein the Government stood as the guarantor. It has been decided to have the case examined in detail so as to bring to the fore, terms and conditions under which such a guarantee was given at that point in time and fix responsibility accordingly, the statement added.

Pertinently, the default on a portion of loan to HUDCO by the Corporation has led HUDCO to blacklist the Government and a consequence of which HUDCO will not fund any other project in J&K till the matter is settled.

Considering that the Government has 70% holding in the capital of the organization, steps are being taken to secure control over the Corporation to ensure that it is run in a fiscally prudent manner maintaining high standards of propriety.

With an aim to have complete oversight of the Government over the functioning of the organization and to run the organization in a professional manner, it has been decided to bring in necessary amendments to Article of Association (AoA) or By-Laws of the Cooperative.

Further, HUDCO will be approached for one time settlement of dues, while exploring the possibility of an appropriate moratorium, preferably without bringing any liability to the Government.

Besides, the entire matter will be thoroughly investigated by the Anti Corruption Bureau (ACB) to pinpoint any criminal misconduct which may have been committed in the said case.