SME Times News Bureau | 18 Apr, 2019
The government on Thursday issued orders to suspend
the LoC trade in Jammu & Kashmir effective from 19-04-2019.
This action has been taken as the Government of
India has been receiving reports that the Cross LoC trade routes are being
misused by the Pakistan based elements for funnelling illegal weapons, narcotics
and fake currency etc, an official release said.
It may be recalled that the LoC trade is meant to
facilitate exchange of goods of common use between local populations across the
LoC in Jammu & Kashmir.
The trade is allowed through two Trade Facilitation
Centres located at Salamabad, Uri, District Baramulla and Chakkan-da-Bagh,
District Poonch. The trade takes place four days a week. The Trade is based on
Barter system and zero duty basis.
However, reports have been received that the LoC
trade is being misused on very large scale. It has been revealed that the trade
has changed its character to mostly third party trade and products from other
regions, including foreign countries, are finding their way through this route.
Unscrupulous and anti national elements are using
the route as a conduit for Hawala money, drugs and weapons, under the garb of
this trade, the release added.
During the ongoing investigations of certain cases
by NIA, it has been brought out that a significant number of trading concerns
engaged in LoC trade are being operated by persons closely associated with
banned terrorist organizations involved in fuelling terrorism/separatism.
Investigations have further revealed that some
individuals, who have crossed over to Pakistan, and joined militant
organizations have opened trading firms in Pakistan. These trading firms are
under the control of militant organizations and are engaged in LoC trade.
After the Pulwama incident, Government of India has
withdrawn the MFN status to Pakistan. Inputs have also been received that in
order to evade the consequent higher duty, LoC trade is likely to be misused to
a much larger extent.
It has, therefore, been decided by the Government
of India to suspend the LoC trade at Salamabad and Chakkan-da-Bagh in Jammu and
Kashmir with immediate effect.
Meanwhile, a stricter regulatory & enforcement
mechanism is being worked out and will be put in place in consultation with
various agencies. The issue of reopening of LoC trade will be revisited
thereafter.