Forced to pay 18% interest on delayed payments, Punjab Fabric Association files complaint with PMO
Members of the association held a meeting in the last week and decided not to pay interest on delayed payments to fibre mill owners in Punjab and other states including Surat, Mumbai, etc for the lockdown period.Updated: May 21, 2020 04:55 IST
The Punjab Fabric Association had filed a complaint with the Prime Minister’s Office (PMO) against 18% interest being charged by fibre mill owners on delayed payments.
Disclosing this, general secretary of the association Bobby Jindal said, “The PMO has responded to their complaint and it has been forwarded to additional chief secretary, industries and commerce, Punjab Vini Mahajan for inquiry.”
He said the association had demanded the intervention of the office in the matter and steps for bringing some relief to fabric mill owners.
Seeking waiver of interest on delayed payments for the lockdown period, the association said, “Even after the lockdown, the members will not be able to pay 18% interest and the rate of interest should be equal to that of charged by banks.”
Members of the association held a meeting in the last week and decided not to pay interest on delayed payments to fibre mill owners in Punjab and other states including Surat, Mumbai, etc for the lockdown period.
Jindal said, “There are around 500 fabric mills in the district, situated on the Tajpur Road, Bahadurke Road, Jalandhar Bypass, focal points and other areas. The industry is reeling under losses and, if fibre mill owners continue to impose 18% interest on delayed payments, the fabric mill owners will be in dire financial straits.”