Cooperative’s proposal being examined in Law Deptt
*Wide
divergence over outstanding liability
Mohinder Verma
JAMMU, Dec 22: The Jammu and Kashmir Cabinet is expected to shortly deliberate on a proposal prepared by the Cooperative Department seeking resolution of a long-pending loan repayment dispute involving the Jammu and Kashmir Cooperative Housing Corporation (JKCHC) Ltd and the Housing and Urban Development Corporation (HUDCO) through the Administrative Mechanism for Resolution of Disputes (AMRD).
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The JKCHC, a cooperative sector undertaking, had availed financial assistance from HUDCO for execution of housing and allied development projects. Over time, differences emerged between the two entities regarding repayment terms, outstanding liabilities, interest calculations and related financial obligations. These disagreements have remained unresolved, impacting both the financial position of JKCHC and the recovery claims of HUDCO.
“Given that HUDCO is a Central Public Sector Enterprise (CPSE) and JKCHC functions under the administrative control of the Cooperative Department of the Government of Jammu and Kashmir, the dispute falls within the category of inter-governmental or government-controlled institutional disputes, making it eligible for consideration under the AMRD framework,” official sources told EXCELSIOR.
Moreover, a committee headed by the Administrative Secretary, Finance Department, and comprising Administrative Secretaries of the Industries and Commerce Department, Food, Civil Supplies and Consumer Affairs Department and Cooperative Department, the Chief General Manager (CGM), NABARD J&K and the Managing Director, J&K Gramin Bank, has recommended placement of the dispute before AMRD.
The mandate of the committee, which was constituted in the month of August last year, included working out modalities for repayment of the loan raised by J&K Cooperative Housing Corporation (JKCHC) Ltd from HUDCO.
“During the period between 1990 and 2001, the Government of J&K was guarantor for all the loans raised by J&K Cooperative Housing Corporation Ltd. As such, it is obligatory on the part of the Cooperative Department to ensure resolution of the dispute between both the entities without further loss of time,” sources said.
The Cooperative Department has drafted a Cabinet memorandum recommending that the dispute, arising out of loans raised by JKCHC from HUDCO for housing-related projects, be placed before the AMRD with the objective of achieving an expeditious and institutional resolution without resorting to prolonged litigation.
“Currently, the memorandum is being examined in the Department of Law, Justice and Parliamentary Affairs and thereafter the same will be placed before the Cabinet for a final call,” sources said, adding that “while HUDCO claims that the dispute involves thousands of crores of rupees, the J&K Cooperative Housing Corporation Ltd is of the stand that less than Rs 100 crore is required to be repaid.”
It is pertinent to mention here that the Administrative Mechanism for Resolution of Disputes (AMRD) is an institutional framework evolved by the Department of Legal Affairs (DoLA), Government of India, to resolve commercial and contractual disputes between Central Government Ministries, Departments, CPSEs, PSUs, and their subordinate or associated bodies. The mechanism was introduced to significantly reduce avoidable litigation in courts and tribunals involving Government entities.
Under AMRD, disputes are resolved through structured administrative processes involving consultations and decisions at senior levels of Government. Depending on the financial value and complexity of the dispute, matters may be examined by committees comprising Secretaries of concerned departments.
In cases involving high stakes or unresolved issues, appeals can be placed before the Cabinet Secretary. Decisions taken under the AMRD are binding on the participating Government entities.
“Referring the JKCHC–HUDCO dispute to AMRD would avoid prolonged and costly court proceedings, enable faster resolution through administrative consensus, reduce legal expenses and interest accumulation, bring clarity on outstanding liabilities and repayment schedules, and align with the Government of India’s policy of minimizing inter-governmental litigation,” sources said.
Moreover, the resolution would help stabilize JKCHC’s financial position and enable HUDCO to finalize recovery of its dues, while also setting a precedent for resolving similar disputes through administrative mechanisms rather than litigation.
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