SRINAGAR: The Federation of Chambers of Industries Kashmir (FCIK) has made an urgent appeal to Chief Minister Omar Abdullah, calling for his immediate intervention to protect Micro, Small, and Medium Enterprises (MSMEs) from what it describes as draconian recovery practices enforced by JK Bank. FCIK expressed its concerns in a letter to the Chief Minister, highlighting the growing distress faced by local businesses under the bank’s aggressive recovery measures.
FCIK criticised JK Bank for intensifying its efforts to seize mortgaged properties, including residential homes, by obtaining orders from the Chief Judicial Magistrate. The chamber emphasised that these actions contradict the Supreme Court’s ruling from August 2024, which reaffirmed that MSME accounts should not be classified as Non-Performing Assets (NPAs) without first attempting their revival, as mandated by a 2015 government notification.
The chamber condemned the bank’s continued harassment of borrowers, noting that public notices, intimidation through newspapers, and property forfeiture have escalated since the establishment of the current popular government in Jammu Kashmir. FCIK urged the government to ensure that banks adhere to both the Reserve Bank of India’s 2016 guidelines and the Union Government’s Framework for the Revival and Rehabilitation of MSMEs.
FCIK further requested that all recovery actions, including public notices, e-auctions, and property forfeiture, be suspended until a resolution is reached. It also called for the expansion of the High-Level Committee established earlier this year to address these issues, proposing the inclusion of the FCIK President to represent the interests of local businesses.
