Srinagar, Apr 16: The Awami National Conference today accused the Banks operating in J&K of invoking the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002 illegally against the borrowers.
 In a statement here today it said even as the Act was not applicable in J&K, “the bankers are taking recourse to it.”
 “State legislature has never extended this Act to J&K,” it said, adding that the responsible citizens were being “unlawfully subjected to harassment, mental torture and disgrace by the banks while pressing for recovery.”
 “The State Financial Institutions and Banks are supposed to take recourse to ordinary laws as envisaged under state laws for recoveries. But unfortunately these institutions are showing utter disregard to the normal legal procedure and remedies available to them for such recoveries,” it said.
 The banking and financial institutions are utilizing the services of “musclemen to get the unlawful and forceful possession of the property and residential houses of the borrowers under the garb of the Act.”
 “To add insult to the injury of borrowers, the banks take help of revenue authorities and police for enforcing this Act,” it said.
 Meanwhile, the party has demanded that state government should conduct probe into such incidents and officials found guilty should be taken to task.
 It said the global recession had hit business and trade across the world. “The business community in J&K has also been badly hit by the recession. Same stands true about the tourism sector. Banks should take note of this situation,” it said.

Lastupdate on : Fri, 16 Apr 2010 21:30:00 Makkah time
Lastupdate on : Fri, 16 Apr 2010 18:30:00 GMT
Lastupdate on : Sat, 17 Apr 2010 00:00:00 IST