Decriminalizing cheque bounce can be a hurdle in maintaining supplychain

The Confederation of All India Traders (CAIT) in a letter to Union Finance Minister Nirmala Sitharaman has urged not to decriminalize Section 138 of the Negotiable Instruments Act, 1881 under any circumstances.  The apex association of trading fraternity in the country has said that such a move will deeply impact the business sentiments of millions of small traders and manufacturers who consider a post dated cheque as a very important instrument to conduct trade and maintain the supply chain.

Explaining the serious issue CAIT Secretary General Praveen Khandelwal said that to decriminalize a most important section like 138 will be like shooting in the foot as instead of creating a fair, honest and trustworthy business environment such a step will completely distort the business conditions and give tremendous rise to unfair and unethical trade practices all across the country thereby putting crores of businessman under the severe risk of losing money to immoral and fraudulent elements of society. “If the person issuing the cheque knows that there is no criminal liability then it will give rise to the ease of being dishonest rather than promoting ease of doing business.”

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