Reeling under losses due to the lockdown, over a dozen industrial associations have filed three separate petitions in the Supreme Court (SC), seeking a waiver of bank loan interest for six months (March to August). The industry has also filed an application seeking extension in the period of moratorium.
One of the petitions has been filed by five knitwear industry associations, the second has been filed by seven associations under the umbrella of Federation of Industrial and Commercial Organisation (FICO) and the third has been filed by Northern India Textiles and Mills Association.
The petitions have been collaborated with similar petitions filed from different parts of the country and were heard on August 26. The SC has directed the union government to file an affidavit on the stand of the government and the next hearing of the case has been scheduled for September 1.
As per information, the loans availed by members of the above said associations amounts to around Rs 21,000 crore and around Rs 160 crore is being paid by them as monthly interest.
Bajwa Nagar knitwear club president Darshan Dawar said, “Small and micro enterprises have been hit badly due to the lockdown and we have suffered loss of crores due to the ongoing pandemic. The sector has also not been able to revive itself after the unlocking started as the demand has dipped and further there is a shortage of labour. No relief has been provided to the sector in terms of bank interest waiver and many units are on the brink of a shutdown. Due to this, we were forced to move the Supreme court.”
{{/usCountry}}Bajwa Nagar knitwear club president Darshan Dawar said, “Small and micro enterprises have been hit badly due to the lockdown and we have suffered loss of crores due to the ongoing pandemic. The sector has also not been able to revive itself after the unlocking started as the demand has dipped and further there is a shortage of labour. No relief has been provided to the sector in terms of bank interest waiver and many units are on the brink of a shutdown. Due to this, we were forced to move the Supreme court.”
{{/usCountry}}FICO president Gurmeet Kular said, “The industry was forced to shut down due to lockdown imposed by the government. Why are we being asked to pay the bank interest for the period when all units were closed? The government should provide a bank interest waiver for at least six months and a moratorium should be announced.”
Advocates Ashish Virmani and Himanshu Dhuper said, “Firstly the Supreme Court has slammed the union government for failing to file an affidavit regarding its stand. The government was directed to file an affidavit before the next hearing of the case which is scheduled for September 1. The moratorium period for payment of bank loan installments is ending on August 31.”