Khanmoh industrialists up in arms against SBI

Accuse bank of targeting local entrepreneur for hiding its failures


Srinagar, Nov 16: Industrialists’ Association of Khanmoh today launched a scathing attack on the State Bank of India, Khanmoh branch, accusing it of targeting an entrepreneur to hide its failures.
 At a meeting held under the chairmanship of its vice president, the association said the SBI to hide its failures was targeting and levelling false accusations against Baba Anmol Foods Private Limited, a industrial unit in Khanmoh Industrial Estate.
 The association members unanimously passed a resolution condemning the role of the SBI.
 Giving details, it in a statement said: “The Baba Anmol Foods Private Limited had raised a loan from SBI Khanmoh way back in 2006. In 2008 when whole Kashmir was taken over by a strong public groundswell, the company failed to deposit its monthly instalment with the bank on its term loan.”
 It said: “The Bank thereafter unilaterally began to withdraw the money from the company’s CC account to settle its term loan. Shockingly this was done without letting the company know and when the company raised objection, it was rejected outright.”
 The association said: “The draining of the CC account of the entrepreneur by the Bank left the company without any working capital that consequently brought down its production and output sharply.”
 “In 2009 an opportunity cropped up for the company. It started a new activity in tie-up with a UK-based Soft Drink company in Jammu. When the company approached the SBI for finance and completed all formalities, the bank refused any assistance creating further problems for the company.”
 “Disappointed by the approach of the bank, the company in 2011-12 requested the Bank for One Time Settlement (OTS) and formally moved a proposal offering Rs 3 crore to settle term loan once and for all. However, the Bank insisted for Rs. 3.75 crore, which the company readily accepted and even deposited a token money of Rs. 10 lakh before July 31, 2012, which was fixed as deadline for the settlement of the term loan.”
 “However, in total disregard to the RBI norms, the Bank kept on lingering the case and began to create fresh problems for the entrepreneur.”
 “As per the RBI norms, the Bank was required to take a final decision on the OTS proposal of the company within 45 days that it did not do,” it said.
 “Aggrieved with the lackadaisical approach of the Bank, the MD of the company wrote a number of mails to the Chairman SBI, Mumbai yet there was no response.”
 “Finally, the MD of the Company wrote a scathing mail to the Chairman, SBI, Mumbai, protesting against the discriminatory attitude of the Bank against Kashmiri entrepreneurs. On this, the Chairman, SBI Mumbai wrote to CGM, SBI, Chandigarh, asking him to investigate into the matter,” the association said.
 “The CGM, SBI, Chandigarh on investigation found an official Mr Gunjoo, who was the sanctioning authority in SBI, responsible for delaying the proposal of the company. However, before any action could have been taken against him, Gunjoo in connivance with a CBI SP managed to get an FIR registered against the MD of the company on July 7, which was followed by raids by the CBI officials at the residence and the factory of the unit holder, which has seriously affected the credibility and the honour of the entrepreneur, who has whole heartedly invested into his venture and has also created the employment for others.”
 The association alleged that the drama was created to hide the “inaction and omission on the part of the SBI to settle the OTS case of the entrepreneur.”
 “We fail to understand what prompted the CBI to raid the factory and the house of the entrepreneur. Even if for the sake of arguments it is presumed, though not admitted, that they were searching for some fabricated bills, such bills could have been found in the Bank only, not at the residence or factory of the entrepreneur,” it said.
 “This all was done and is being done to protect the Bank official who is responsible for dilly-dallying the case of the entrepreneur, and who has some vested interest in the particular case.”
 The association said it was quite disgusting that while none other than the chief minister and finance minister have a number of times urged the banks operating in Kashmir to have liberal attitude in extending loan facilities to the local entrepreneurs, “these banks are creating problems for the local entrepreneurs.”
 They alleged that the bank had “committed illegality at the first place by unilaterally withdrawing the money from the CC account of the entrepreneur without his authorization, thus leaving the entrepreneur high and dry, which has totally shattered the production of the unit.”
 The Association strongly condemned “the act of the SBI and urges the higher authorities of the Bank and the state to investigate into the high handedness of the bank authorities before we may take other steps in this regards.”

Lastupdate on : Fri, 16 Nov 2012 21:30:00 Makkah time
Lastupdate on : Fri, 16 Nov 2012 18:30:00 GMT
Lastupdate on : Sat, 17 Nov 2012 00:00:00 IST

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