HC: Scheme denying relief for commercial loss during 2002 riots ‘arbitrary’

In his fresh petition in the Gujarat High Court,Panchal has sought direction to the state government to grant him compensation.

In its reply before the HC,the general manager of the Ahmedabad District Industrial Centre had stated that the petitioner was not covered under the scheme under which he has to get loan from financial institutions like banks.

According to Panchal’s lawyer Hasmukh Patel,under the government scheme regarding compensation for commercial loss during the riots,the loss is assessed by the relevant government department. And following the assessment,the concerned person can apply for getting loan of the assessed amount.

“The government scheme has a provision to provide subsidy only on the interest of the said loan for three years. There is no clarification on how financial institutions will follow the government scheme of subsidy on the said loan,” Patel said.

Panchal had applied for a loan from a bank for loss of Rs 7 lakh as estimated by the government assessor. But the concerned bank turned down his loan request. Panchal has claimed Rs 17 lakh towards the damages suffered by him.

Hearing the petition,the Division Bench (DB) of Chief Justice S J Mukhopadhyaya and Justice A S Dave observed,“Even if we accept the assessment made by the respondents,the ground taken by the respondents to deny the benefit of compensation/relief saying that he is not covered under the scheme under which he has to take loan,prima facie appears to be arbitrary.”

Further hearing on the petition has been kept on January 20 when the Assistant Government Pleader is expected to file an affidavit clarifying as to whether the state intends to pay compensation to Panchal proportionate to the loss suffered by him during the riots.