Bank interest exemption

Knitwear Club files writ in apex court, hearing today

Knitwear Club files writ in apex court, hearing today

Photo for representational purpose only

Tribune News Service

Ludhiana, August 13

Unable to pay hefty interest to banks, associations attached with the Knitwear Club have filed a writ petition in the Supreme Court (SC), the hearing of which is tomorrow (August 14). Himanshu Dhuper and Ashish Virmani will represent knitwear associations.

The writ has been filed to seek exemption for at least six months from interest on loans/capital amount taken by the industry from different banks. “Actually, three writs have been filed by different industrial associations, but the issue is the same. The industry wants exemption from hefty interest imposed by banks,” said Dhuper.

“Starting from March there is lockdown all over the country. Hosiery and apparel manufacturers and exporters have failed to sell their summer products. Stocks have piled up. Similarly, they have not got enough orders for winters,” Dhuper added.

“As compared to last year, there is only 20 per cent production in units. The demand and supply cannot be met and the industry is badly hit. The industry (five associations attached with the knitwear industry) wants exemption for interest, which is around Rs23 crore,” Dhuper said.

Around 2,000 members and associations, including Bahadurke Textile Association, Knitwear Club, Bajwa Nagar Hosiery Association, Ludhiana Woolen Manufacturers Association and Knitwear and Apparel Association are affected. Besides, big houses under NITMA have also approached the apex court on the same issue. Their interest amount is Rs112.5 crore. The seven associations attached with FICO have already filed writ for interest exemption.

Darshan Dawar, representing the Knitwear Association, said the industry was passing through tough times. Labour issues, absence of orders, low production etc were to be tackled, but bank interest was an additional financial burden on the industry.

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