The Kashmir Chamber of Commerce and Industry (KCCI) Sunday said that the state government has contested the case regarding the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act 2002) in the apex court in a "shoddy and clandestine manner".
In a statement, KCCI said the judgment of the apex court severely impacts the constitutional position of the state and would have far reaching consequences for the autonomous character of the state.
It was the duty of the successive governments of the state to enact an corresponding act in the state assembly for protection of the security and financial assets of all the banks operating in the state, the statement said.
"The failure to do so has resulted in a situation which now threatens the very constitution, autonomy and the special status of the state. The banks have been forced to take the only remedy of SARFAESI Act to protect their assets and securities from willful defaulters," said president KCCI, Mushtaq Wani.
"The casual conduct of the state in contesting the case casts doubts in the minds of the common people and rightly so. It has been given to understand that the state has failed in its duty to bring the correct constitutional position before the Supreme Court. The State has remained casual in defending the case as is indicated by the reported absence of any senior advocate or even the Advocate General of J&K State in the Apex Court," the statement added. "The no objection given by the state counsel to the application of the SARFAESI Act 2002 in the State of Jammu and Kashmir requires for the state to explain its position before the general public," the statement said.
The Chamber has urged the state government to appreciate the seriousness of the issue and explore all legal remedies available to it for protecting the special status of our state.