Government refers Rs. 40.63 Crore default on loan by the J&K Housing Corporation to ACB

Srinagar: Taking serious note of irregularities in functioning of the J&K Housing Corporation, the Government in a significant decision has come up with a number of measures aimed to streamline the organization.
The decision comes in the backdrop of a default on Rs. 40.63 Crore loan by the J&K Housing Corporation to HUDCO, wherein the Government stood as the guarantor. It has been decided to have the case examined in detail so as to bring to the fore, terms and conditions under which such a guarantee was given at that point in time and fix responsibility accordingly.
Pertinently, the default on a portion of loan to HUDCO by the Corporation has led HUDCO to blacklist the Government and a consequence of which HUDCO will not fund any other project in J&K till the matter is settled.
Considering that the Government has 70% holding in the capital of the organization, steps are being taken to secure control over the Corporation to ensure that it is run in a fiscally prudent manner maintaining high standards of propriety.
With an aim to have complete oversight of the Government over the functioning of the organizationand to run the organization in a professional manner, it has been decided to bring in necessary amendments to Article of Association (AoA) or By-Laws of the Cooperative.
Further, the entire matter will be thoroughly investigated by the Anti Corruption Bureau (ACB) to pinpoint any criminal misconduct which may have been committed in the said case.