Kashmir Oil Co (P) Ltd. Industrial Estate Zakura, sealed by SFC for default of loan payments

Srinagar, Dec 14: In order to recover the money from defaulters, the State Financial Corporation has initiated stringent measures and in an examplanary recovery, the SFC achieved a milestone by getting a recovery of Rs. 36 lakh in one go from the defaulter.

According to news agency Kashmir Dot Com- (KDC) that M/s Kashmir Oil Co (P) Ltd. Industrial Estate Zakura, Srinagar who had availed a loan in the year 1985 and had tuned NPA. Since the year the borrower and the guarantors of the Company were not depositing the loan liability of the Corporation.

Sources told news agency KDC that the borrower initially applied for settlement of loan, but the Corporation despite giving chance to the borrower to clear the default amount, further provided concession in shape of settlement package for realization of the entire balance, but the borrower failed to fulfill the conditions governing the approved settlement packages and turned again in default and disobeyed the instruction of the Board of Directors of the Corporation. Interestingly the borrower created un-necessary litigation and even managed to get a stay order from the Deputy Commissioner, Srinagar under the grab of Migrant Property Act saying that SFC cannot sell his property to recover the loan. However after taking over the charge of MD, SFC Rajesh Kumar Shavan, the Corporation has enlisted all the chronic defaulters and accelerated the process of recovery of government money. The Corporation in the last month recovered Rs. 2.14 Crore, sources added.

“Shavan has set the targets of Rs. 3.00 Crore for the current month and the salary of the poor performing branches has been stopped.”

According to sources, this was the third factory being taken over by the Corporation during the month as per the instructions of the Managing Director. Today under the supervision of Arshid Habib Jallu, Chief Manager (MIS) the team assisted by senior officers of the Corporation coordinated with the Police to take over the unit. However, after the stringent action of the Corporation, the borrower immediately deposited an amount of Rs. 36 Lakh and produced the receipt enabling the Corporation to withdraw the team from the premises of the factory. (KDC)