Sarfaesi Act to add to the problems in J&K: Chadha

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Newspoint Bureau
Jammu Tawi, December 22
Former State Treasurer and President Citizen’s Forum Jammu R K Chadha has requested to Chief Minister Mehbooba Mufti to take serious view of the problems going to be created with the application of Sarfaesi Act in this State. In the absence of an Industrial Policy in this state, Industry in Jammu and Kashmir has been suffering all requisite benefits, and it is being run on the whims and fancies of the politicians elected from time to time. In 2002 when Central Government wanted to enforce this law, Citizen’s Forum had requested Mufti Sahib , not to enforce this law in this state as the , the previous Parliament Act of “Sick Industries Special Provision Act ” 1985 for the rehabilitation of Sick Industries of this state was never taken seriously by the Banks in this State. Banks in this state, particularly in Jammu region had totally under financed the industries as well as business units. Mufti Sahib had refused to allow even the functioning of DRT which is for appeal of this Act. For the last 30 years Banks have not rehabilitated more than 30 units, those too very small units here in Jammu and Kashmir. Thousands of underfinanced units in this state has gone Sick and closed and were never rehabilitated. The Banks does not bother even to help the Insipid units to stand again in their proper financial requirements. The application of NPA in this state is another story. All banks do not agree to RBI notifications for settling the outstanding amounts of the Sick closed units at NPA amount. The Supreme Court has clearly ordered that even the Directors of the Banks does not have any discretionary powers to refuse the guidelines of the RBI while compromising the one time settlement under NPA.

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