Punjab Pradesh Beopar Mandal raises voice against move to decriminalize various economic offences
Says proposal, if implemented, will adversely affect working of business entities
Ludhiana: There prevails a great resentment against a move of the Government of India (GoI) to decriminalize various economic offences specially cases under 138 Negotiable Instrument Act.
Stating this here today, the Punjab Pradesh Beopar Mandal state general secretary Sunil Mehra and state secretary Mohinder Aggarwal added that the Union Ministry of Finance has put forwarded this proposal and it has invited the suggestions from all stakeholders till June 23 this year. With this, there is a widespread fear that the proposal, if implemented, will adversely affect the working of business entities dealing on credit or post-dated cheque basis.
The mandal leaders further said there also a widespread fear that the government decriminalizes a cheque bounce then it is like to create a massive liquidity crunch whereas there already prevails a huge liquidity crunch due to series of reasons, including the present crisis arisen due to lock down in view of civid-19 pandemic from March 23, 2020 onwards.
They pointed out that no one can rule out the possibility of hampering of the entire business cycle in case business faces an additional uncertainty of not receiving the promised money from debtors. The baking sector will also get affected with decriminalization of a cheque bounce case and it will ultimately lead to more bank NPA.
Further, the mandal leaders pointed out that the move of de-
criminalization of economic offences will lead to financial and economic instability across the country and economic frauds will increase. It will also lead to increase in the number of litigation cases, thus, putting additional burden on the judiciary.
The only remedy left with the litigants would be to file suit for recovery which is procedurally very slow and cumbersome. The person who seeks recovery of his
money has to pay hefty court fee and wait for years to get his money back. The defaulters will get an advantage and the opponents will be the great losers from every aspect, they said.
Expressing their surprise over the move, the mandal leaders said they are unable to understand as to under whose pressure the government is proposing to dilute Section 138 of Negotiable Instrument Act whereas Hon’ble Supreme Court has, fixed six months deadline to settle the cases under this act.
The mandal leaders said it is not justified to say that the proposal has been brought in favour of people who are unable to cope up with the covid crisis. They strongly urged upon the Union Finance Minister Nirmala Sitharaman to disregard the proposal in the larger interest of business entities and ensuring complete financial and economic stability across the country, otherwise, serious consequences cannot be ruled out in the future.
They revealed that a deputation of Punjab Pradesh Beopar Mandal under the leadership of state president Piara Lal Seth will meet the Union Finance Minister Nirmala Sitharaman in the near future. They said the mandal has already sought time for the meeting from the Union FM.