AITF national president Badish Jindal writes to PM Narendra Modi
Author(s): City Air NewsIndustrial leader Badish Jindal. Suggests that CIBIL score of all individuals and companies be made public Ludhiana, July 18, 2019: All Industries & Trade Forum national president Badish Jindal has written to Prime...
Suggests that CIBIL score of all individuals and companies be made public
Ludhiana, July 18, 2019: All Industries & Trade Forum national president Badish Jindal has written to Prime Minister Narendra Modi stating that the banks are in big trouble due to NPA crisis of billions of rupees in India.
On the same lines the industry is also in trouble due to such defaulters, he added.
He opined that the CIBIL is the only criteria to check the financial status of any individual or company. The banks have the access to get the CIBIL record of any company or individual.
“But such data is unavailable for public. Failing which the sellers are unable to know about the financial status of their buyers. Which result in defaulting of payments in millions of cases”, he added.
He said the Banks even hide the NPA and sickness information of customers, so in the absence of such information the trade and industry unable to get the true information of financial status of their buyers.
In the absence of information such units also play foul with taxation, EPFO, ESIC and other departments, he said.
Further, he said as per the data of AITF it is found that 50% of such NPA units are willful defaulters and beside banks they did the fraud with their suppliers and banks. Such units have also did the frauds by avoiding taxes, and other labour liabilities.
“So it is suggested that the CIBIL score of all individuals and companies be made public, along with CIBIL the bank sickness score and NPA data should also be made available to public”, he suggested.
In Limited and Private Limited companies the CIBIL of the directors should be linked to the company. So they can be stopped from committing frauds by creating new companies, he further said.
Specially the list of units having low CIBIL should be put mandatory on any public domain, he also sugegsted.
“This will have multiple benefits as every individual seller will came to know about their buyers credit score. The defaulters will try to avoid such willful acts. The Banks and Individuals can be saved from frauds by such defaulters”, he said.
Adding, Jindal said with such system everyone will try avoiding such activities and this will improve the financial health of banks and financial institutions. The industry will have more confidence in doing business in India. This will be considered as social status and everyone will avoid to take unwanted risks of defamation.
“It is further requested that the delayed payment act should also be linked to CIBIL for its strict implementation”, he suggested while concluding.