The medium level retailers in the city want the government to free them from the clutches of the banks which allegedly use the powers in the Non-performing Assets Act-2002. The traders also demand protection of the local retailers by not allowing FDI in the retail sector, end inspector Raj, decrease VAT rate and making it all the more accessible.
“The banks have a big instrument in their hands by NPA Act passed by previous NDA government in 2002. The bank officers extort traders on the name of this Act,” said R P Bansal, president of Bank’s Borrowers Association. Explaining the misuse of the Act he said the traders get short term loans from banks in their running accounts to be deposited in 90 days and if they fail it’s on the mercy of bank manager and officers to extend the duration.
“They charge up to 10 percent of the loan amount to give 180 days more or send a legal notice to deposit entire money within 90 days. On the expiry of the notice period they mortgage the property and auction it,” said Rami Vohra, Vice-President who himself is a victim of the process. His bungalow in South Delhi was auctioned for Rs 7 crore by the bank which was sold to another partner within a month. So far banks have auctioned properties of 43,000 traders in the city, informed Bansal. The banks officers if not paid bribe use the clause of NPA Act to auction the properties of borrowers. The medium traders generally get loans in their current accounts from Rs 50 lakh to Rs 1 crore or more.
“The government must end Inspector Raj in the city. We want legitimate business but not a government officer behind us,” said Praveen Khandelwal, general secretary of Confederation of All India Traders (CAIT).
He also demanded the government not to open retail sector in the city for Foreign Direct Investment (FDI) as local traders need government protection and work in very difficult situations. Decreasing the rates of Value Added Tax (VAT) and making the process easier are the other demands. CAIT emphasised that the new government should try to bring more tax payers in the net to increase revenue but not harass honest taxpayers.
“The banks have a big instrument in their hands by NPA Act passed by previous NDA government in 2002. The bank officers extort traders on the name of this Act,” said R P Bansal, president of Bank’s Borrowers Association. Explaining the misuse of the Act he said the traders get short term loans from banks in their running accounts to be deposited in 90 days and if they fail it’s on the mercy of bank manager and officers to extend the duration.
“They charge up to 10 percent of the loan amount to give 180 days more or send a legal notice to deposit entire money within 90 days. On the expiry of the notice period they mortgage the property and auction it,” said Rami Vohra, Vice-President who himself is a victim of the process. His bungalow in South Delhi was auctioned for Rs 7 crore by the bank which was sold to another partner within a month. So far banks have auctioned properties of 43,000 traders in the city, informed Bansal. The banks officers if not paid bribe use the clause of NPA Act to auction the properties of borrowers. The medium traders generally get loans in their current accounts from Rs 50 lakh to Rs 1 crore or more.
“The government must end Inspector Raj in the city. We want legitimate business but not a government officer behind us,” said Praveen Khandelwal, general secretary of Confederation of All India Traders (CAIT).
He also demanded the government not to open retail sector in the city for Foreign Direct Investment (FDI) as local traders need government protection and work in very difficult situations. Decreasing the rates of Value Added Tax (VAT) and making the process easier are the other demands. CAIT emphasised that the new government should try to bring more tax payers in the net to increase revenue but not harass honest taxpayers.