The Chamber of Chandigarh Industries has strongly condemned the amendment in the Companies Act, which debars private limited or family owned companies taking loans from shareholders or relatives, friends or any other persons except banks and its directors.
Vinod Mittal, president of the Chamber, said that most of the private limited companies were running with limited resources with the help of their acquaintances or relatives from whom they borrow money when required. But with the present amendment they can only take loans from the banks or the directors.
Mittal said that this amendment was unjustified and totally unacceptable which will badly affect the business of the private limited companies which is the backbone of the economy.
He said that bank offers loan at much higher rate of the interest in comparison to the rates they are presently getting from their friends or the relatives. He said that the Chamber will oppose it and soon a delegation will meet Chandigarh BJP president and the Member of the parliament Kirron Kher to convey their displeasure over the amendments. Mittal said that the Government has made the amendments without taking the bodies of the private limited companies in the loop.
If the government does not withdraw the amendments then the private limited companies will have no option but to lose in the competition, he adds.
