Amethi, June 22 (KNN) Congress VP Rahul Gandhi’s turf Amethi, since a very long time  has been facing  a  dire need of working capital for MSMEs most of which had  been served premature recovery/auction notices by the banks.

 Sick units  who had been  facing huge financial crunch  voiced their  concerns over closure of the units through  IIA Amethi chapter   to RBI, MSME Ministry, Central and State Government due to lack of support from the banks to which U.P CM’s office acted promptly.

Looking into the sensitivity of the matter commanding  immediate action and attention , Sanjay Kaul, Chairman Banking and Taxation Working group of Indian Industries Association (IIA) reported the issue  to the UP  Chief Minister Akhilesh Yadav’s office  .

The CM’s office took immediate action and advised the Directorate of Industries & Enterprise Development U.P to look into the matter urgently. Looking at the extremely adamant and non cooperative attitude of banks not abiding by the  RBI’s  Framework for Revival and Rehabilitation of Micro, Small and Medium Enterprises (MSMEs) the matter finally received due attention from CM’s office.

Under the revival and rehabilitation  framework, cases for all MSME loan accounts where principal or loan instalments are overdue for 60 days or above are to be compulsorily placed before the district committee for stressed MSME assets for developing corrective action plan (CAP).

But  as pointed out by Shahnawaz Ahamad , Chairman, IIA Amethi Chapter , “While the recovery and auction of sick units should be the last option for the banks to recover their loans, in Amethi area the banks consider that as their first option and send recovery/ auction notice to the units as soon as the unit turns NPA after 90 days of defaulting with no attention to revive or rehabilitate them” .

While  Mr Kaul , appreciated  the prompt action taken by the Chief Minister’s  Office  there are many more such cases where banks in Amethi have resorted to coercive actions prematurely against Micro & Small Industries in the district threatening their permanent closure .All of which has resulted in  loss of employment as well as government’s tax  revenue. 

Considering the current scenario Kaul  urged the Chief Minister to initiate non-co-operation with the banks by not parking the state funds in the banks who are not co-operating in the industrial development and rehabilitation of the sick industries in U.P.  (KNN/GK)