Srinagar: A high-profile civil suit has been filed in a court in Srinagar by businessman and former office-bearer Nasir Hamid Khan, alleging illegal removal from membership of the Kashmir Chamber of Commerce and Industry (KCCI), in what he calls a “retaliatory action” motivated by his whistleblowing on financial irregularities within the influential trade body.
Khan, proprietor of Sunfresh Supermarkets and a Chamber member since 2002, has petitioned the court for a declaration that the Chamber’s refusal to restore his membership is “arbitrary, illegal and contrary to the KCCI’s Articles of Association”. He has also sought mandatory and perpetual injunctions to reinstate his membership and bar further obstruction to his participation in chamber activities, especially elections.
The petitioner said his suit was moved before the District Judge, Srinagar, who has transferred it to the Court of the 4th Addl District Judge, where it stands registered. They were Caveat and notice has been issued to the respondents through their Counsel for filing of a written statement and objections. The next date of hearing is June 13. According to the suit, the trouble began after Khan, during his tenure as Senior Vice President (2017–2020), flagged alleged financial misconduct in the organisation of the “7th International Buyer-Seller Meet” in 2018. Two audit reports (Annexures VI and VII) presented to the Executive Committee indicated misuse of government grants and inflated billing, allegedly resulting in losses of over Rs 24.82 lakh to the Chamber. The committee subsequently resolved on August 2, 2019, to recover Rs 15 lakh from four past office-bearers, three of whom now hold senior positions in the current executive.
Khan alleges that his efforts to expose the misappropriation led to mounting hostility from current leadership, including the incumbent President and Junior Vice President, two of the four persons named in the recovery order.
In August 2024, Khan, according to the petition, received a notice for unpaid subscription dues of Rs 8,378. Believing he had until March 2025 to clear the dues and choosing to remain a “passive member”, Khan claims he did not attend the Annual General Meeting. However, when he visited the Chamber in March 2025 to settle the dues, he was told his membership had been terminated in September 2024.
He immediately paid Rs 15,458, which included arrears, GST, and an “admission fee”, and applied for membership restoration. But three months later, there was still no official response, even though, under Article 7(e) of the KCCI Constitution, decisions on such applications are to be communicated within 15 days. Khan alleges the admission fee was wrongly imposed to prevent his candidacy in future elections by making him ineligible under Article 7(a)(i) and 7(a)(ii), which require two to four years of uninterrupted membership to contest elections.
Further, Khan states that his payment was quietly refunded to his bank account without notice or consent, and that he has since learned informally that his restoration was declined.
The petitioner argues that many current Executive Committee members have a conflict of interest in his case, having previously been accused in the 2018 buyer-seller scam. Some of them also reportedly challenged the recovery orders in court to delay enforcement and subsequently rose to top posts within the organisation.
The suit claims that the current leadership’s refusal to reinstate him is “a calculated move to suppress dissent and cover up scams.” Khan also points to previous contributions, including drafting a landmark insurance relief petition after the 2014 floods and preparing a widely-cited economic loss report post-August 2019, as evidence of his active involvement in advancing the chamber’s interests.
Khan also states that he was summoned by the Counter-Intelligence Kashmir (CIK) in December 2024 in connection with FIR No. 26/2020 linked to irregularities at the Chamber. The CIK investigation is said to have originated from Khan’s internal audit and complaint submissions to KCCI, making him a key whistleblower in the probe.
In addition to demanding reinstatement from March 3, 2025, the suit seeks that the KCCI be directed to follow through on the 2019 recovery decision of Rs 15 lakh from the accused office-bearers. Khan’s legal counsel, M/s Manzoor A. Dar and Associates, argues that the KCCI, though a private association, exercises quasi-public functions and is therefore bound by principles of natural justice and fairness under Articles 14, 19, and 21 of the Constitution.
They contend that the executive’s failure to communicate a decision within the prescribed time amounts to implied acceptance, or at the very least, a procedural violation. They also note that fiduciary principles apply to KCCI office-bearers, who must act transparently and without bias.
Khan has additionally filed an application for ad-interim relief, seeking a stay on any communication denying him membership and requesting immediate reinstatement until the final verdict. He argues that without this interim relief, the very purpose of his suit, namely the right to participate in upcoming elections, would be defeated.
The civil suit, valued at Rs 51,000 for declaration and injunctions, is now before the Principal District Judge, Srinagar. The plaintiff claims that KCCI’s refusal to reinstate him stems from “malice, selective rule enforcement and abuse of institutional procedures to settle personal scores.”
With FIRs, internal audit reports, emails, and transaction receipts forming part of the annexures, the case raises serious questions not only about the integrity of KCCI’s executive committee but also about how whistleblower protection and internal accountability are handled within Kashmir’s premier business body. The case is expected to test both the chamber’s constitutional framework and the limits of civil court oversight over private associations.
