BTA urges 3-pronged govt approach on “coercive” loan recovery actions in Kashmir

Srinagar, Oct 23: The Batamaloo Traders Association, under the leadership of its President, Peer Imtiyaz ul Hassan, has expressed its  deep concern over the recent ‘coercive measures’ taken against businesses in Kashmir by financial institutions. We strongly denounce the public ‘name and shame’ policy being used to highlight non-performing accounts (NPAs) as an unjust and harmful strategy that exacerbates the psychological and financial stress of local traders, the Association said.

BTA further said that this punitive approach disregards the extraordinary circumstances that have negatively impacted businesses in Kashmir over the past few years, including:

The devastating floods of 2014

Civil unrest in 2016

Prolonged political disruptions following the abrogation of Article 370

Economic stagnation during the COVID-19 pandemic

The post-pandemic inflationary trends and operational challenges

These crises have collectively crippled the region’s business sector, leaving many traders in financial distress despite their best efforts to meet obligations. Resorting to public humiliation further alienates and demoralizes already struggling business owners, creating a ripple effect of fear and insecurity throughout the business community, the traders added.

Many traders had secured loans under transparent terms but now find themselves victims of systemic challenges beyond their control. In such a climate, aggressive recovery actions through the publication of NPAs, media trials, and auction notices reflect an indifferent attitude towards the realities of the business environment, BTA further said.

BTA calls upon the Lieutenant Governor, Manoj Sinha, and Chief Minister, Omar Abdullah, to take immediate steps to:

1. Suspend all public notices of NPAs and auction announcements until new relief measures or OTS (One-Time Settlement) schemes are rolled out.

2. Ensure alignment with MSME norms that offer traders operational flexibility without restrictive conditions.

3. Adopt a more compassionate recovery policy that acknowledges the extenuating circumstances faced by businesses in Kashmir and supports long-term sustainability.

A harsh and unforgiving recovery approach will deter new entrepreneurs, stifle growth, and threaten the very foundation of Kashmir’s economy. The Batamaloo Traders Association stands firm in its resolve to defend the interests of its members and urges the administration to foster an environment of empathy, fairness, and support for those who have kept the local economy afloat in these trying times.

For further information, contact:
Peer Imtiyaz ul Hassan
President,
Batamaloo Traders Association.