FCIK seeks compensation for business losses due to law & order issues

Srinagar, Jan 7: The Federation of Chambers of Industries Kashmir (FCIK) has called on the 19-member Industry-related Parliamentary Standing Committee, led by veteran parliamentarian Tiruchi Siva, to address the substantial business losses sustained by Kashmir’s entrepreneurs over the past three decades due to frequent law and order issues.

In a meeting, FCIK President Shahid Kamili and Advisory Committee member Shakeel Qalander informed the Committee that nearly 3,000 days of disruptions due to law and order issues have caused severe financial losses, stunted growth, and forced the closure of many businesses.

While the burden of financial obligations, such as bank interest, idle wages, taxes, and other expenses left businesses unable to recover, no compensation was provided to them ever.

FCIK has urged the Standing Committee to recommend the formation of a high-level committee to assess and document the losses incurred since 1989 and explore compensation options for the central government’s approval. This would help address longstanding grievances and create a more favorable environment for industrial growth and recovery in the region.

FCIK also highlighted the growing crisis among Micro, Small, and Medium Enterprises (MSMEs) in J&K, driven largely by factors beyond the control of entrepreneurs. Many MSMEs are struggling to meet financial obligations, further exacerbated by delayed payments from buyers, including government departments. FCIK stressed that banks must recognise these challenges before resorting to harsh recovery actions.

Despite clear instructions from the Union Ministry of Finance for a more humane approach, FCIK criticised J&K Bank’s aggressive recovery tactics in the past three years which included harassment and forced dispossession. Such actions have deeply impacted the entrepreneurial community and deterred potential investors. However, FCIK hopes that this attitude will change with the appointment of the new MD and CEO of the bank.

To mitigate the Non-Performing Asset (NPA) crisis, FCIK has called for grant-in-aid, soft loans, and the launch of a uniform, non-discriminatory Special One-Time Settlement (OTS) scheme by the J&K Bank.

FCIK also expressed concerns about the recent OTS scheme launched by J&K Bank, which it believes favours the bank’s interests over the needs of local businesses.

FCIK has urged for a revision of the scheme in consultation with the Jammu and Kashmir Government and stakeholders to ensure substantial reductions on NPA balances, waivers of unapplied interest, and a simplified process.

"The revised scheme should be inclusive, offering benefits to all borrowers and providing a repayment schedule tailored to the region’s unique challenges, including longer terms and lower interest rates", demanded FCIK.

FCIK also raised key issues, including the need for a unified, comprehensive industrial policy, reforms in public procurement to promote local industrial goods, improved credit flow, the introduction of business interruption insurance, development of industrial infrastructure, and the implementation of amnesty schemes.

The Chairman and members of the Standing Committee responded positively to all concerns raised by FCIK. They immediately requested Chief Secretary Atal Dulloo to address the issues falling within the jurisdiction of the J&K government. The Chairman also urged the MD and CEO of J&K Bank to revisit the bank's OTS scheme to better address the grievances of local stakeholders. The Parliamentary Committee assured FCIK president to take up all issues concerning the central government in order to bring much needed relief to the entrepreneurs of the region.