As per rules and regulations, no one, not even in the private financing companies can demand a blank cheque and even if we go by the ruling of the Supreme Court, a post-dated check given as a security for the loan repayment instalment does not carry any weight—rather, the court has ruled out the same. The SC’s stand on the matter negates the validity of seeking, or forcing the clients to submit undated cheques against the repayment instalments. The same leaves no scope for these companies to go on with the malpractice that they have been doing over the years. We have seen the true colour of these companies during the pandemic when the people failed to repay the loan amount, they were threatened and harassed to such an extent that death seemed to be an easier option to them.
Law is there for the protection of people and it guides individuals on all matters, particularly, financial matters. In this case, the authorities need to raise awareness about dos and don’ts while getting involved in financial transactions of any sort. It may also be noted here that those who should have kept an eye on such matters and guided the innocent people—who go for loans in case of emergencies—on how to go about it; what to do and what not to do have not done their job. There should have been a dedicated cell keeping an eye on all such companies operating in J&K which are largely involved in taking people for a ride. They do get the loan, but by the time they realise it, they find themselves in soup: which gets even more complicated in case they failed in repayment.
There is a need for authorities in J&K to monitor the functioning of these companies and in case violations of rules and regulations are found to have been committed, necessary action should be taken against the offenders. The LG Manoj Sinha must look into the matter at the earliest so that the common people are protected, not taken for a ride, and at the same time, those found to be violating the law must be asked to shut their ventures and shown the exit door. These companies which have no regard for the law and ethics should not be allowed to operate in any case.
