Shahr-e-Khaas traders pitch for special OTS scheme

Srinagar, Nov 1: In a fervent appeal to the Lieutenant Governor and Chief Minister, the business community of Shahr-e-Khaas has brought to light a critical issue plaguing local traders and manufacturers regarding the stringent recovery measures implemented by J&K Bank.

The Shahr-e-Khaas Traders and Manufacturers Coordination Committee, led by President Imtiyaz Ahmad Malik, has raised serious concerns about the bank’s approach towards businesses that were severely impacted by the COVID-19 pandemic.

A statement said that the traders argue that “many businesses in Shahr-e-Khaas, which were once prestigious clients of the bank, have been unfairly categorised as defaulters due to circumstances entirely beyond their control. They emphasise that while they do not support genuine willful defaulters, the harsh recovery methods currently being employed are pushing legitimate business owners to the brink of financial and personal destruction.”

At the heart of their appeal is a request for a One-Time Special Settlement Scheme that would provide a lifeline to struggling businesses. The proposed scheme suggests a cap of Rs 50 crore with a minimum repayment period of two years, designed to help local businesses in Shahre Khass recover and rehabilitate their economic standing.

Malik emphasised that while they do not support willful defaulters, the majority of affected businesses are genuine entrepreneurs struggling to recover from unprecedented economic challenges. The organization is calling for a compassionate approach, including a proposed One-Time Special Settlement Scheme that would provide businesses with a viable path to resolving their financial obligations.

The most alarming aspect of the bank’s current approach, according to the committee, is the practice of sealing residential properties and potentially evicting families. They view these actions as excessively harsh and counterproductive to economic recovery.

The traders’ group is hoping the government will step in to mediate the dispute, providing a balanced solution that protects both the bank’s interests and the livelihoods of local businesses. They remain hopeful that a negotiated settlement can be reached that allows businesses to rebuild and contribute to the local economy.