Srinagar, Aug 8: The Federation of Chambers of Industries Kashmir (FCIK) has regretted the action of J&K Bank to seize an industrial unit at IGC Lassipora on Tuesday, maintaining that the action was taken ‘within just two months of downgrading of account of the enterprise’.
Terming it a ‘new low in intimidation of entrepreneurs’, FCIK said that the bank had seized a residential house in Srinagar within 5 months of downgrading of the account of concerned entrepreneur.
In a statement issued to media, FCIK said that the bank officials ‘forcibly took possession of an industrial unit M/s Mehfooz Agro Products at Industrial Growth Centre Lassipora on Tuesday which has been set up in 2017 by a highly educated young person who had topped in MCA examination.’
The said unit is engaged in processing and export of walnut/almond kernels that had unfortunately received a severe setback during COVID-19, FCIK said adding that “despite this the entrepreneur was regular in servicing his cash-credit facility of 69.50 lacs and paying installments towards Guaranteed Emergency Credit Line (GECL) of 14 lacs sanctioned in his favour under a scheme approved by GOI to combat the crises caused by pandemic and guaranteed by GOI.”
According to the promoter of the unit, Shahid Gulzar, he had already paid back 7 lacs out of 14 lacs of GECL and had also paid 50 thousand rupees during the month of May itself when his account was downgraded at the end of the month, FCIK said.
“Although the bank had demanded a payment of Rs.42000 more, yet he could not arrange and make for the reason that he was completely busy in the hospital with her ailing young wife who suffered from terminal illness which was well in the knowledge of bank officials, explained the promoter”, FCIK further said.
Regretting the treatment meted out to this young educated entrepreneur, FCIK said it was “beyond comprehension why the bank in the first instance had denied credit to this entrepreneur under the existing scheme of Credit Guarantee fund Trust for Micro and Small Enterprises (CGTMSE) which has been devised by GOI for such entrepreneurs and assured of collateral-free credit to them up to 5 Crores”.
The question also aroused as to why the bank instead of exploring other options, including restructuring of the debt of the entrepreneur, opted for seizing his property when that property valued at more than 3 times of the total outstanding.
While reiterating its demand for government intervention at the earliest on this unfolding crisis, FCIK has called for a meeting of presidents of valley based industrial associations to deliberate upon the issue tomorrow. The industrial association of Lassipora is also scheduled to discuss this issue tomorrow.
