Baghat Urban Cooperative Bank facing loan recovery perils

With officials dilly-dallying over taking possession of the properties of loan defaulters of the Solan-based Baghat Urban Cooperative Bank, recovery has become a major challenge for the bank management. The bank is also facing Reserve Bank of India (RBI) curbs.

Solan Tehsildar today dithered from taking possession of a loan defaulter Surinder Verma’s property, who owes Rs 1.27 crore to the bank. The proceedings are part of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act which empowers banks to recover loans without court’s empowerment.

Though the Tehsildar had issued a notice on November 17 to the staff concerned, including the police and revenue officials, to take possession of the mortgaged property today, he himself dithered from going to the site much to the disappointment of the bank management.

This drew sharp criticism from bank directors who accompanied the SARFAESI team comprising policemen to take possession of the property which would then be put to auction to recover dues.

Though bank’s vice chairman Kiran Kishore Thakur, directors Krishan Grover and Surinder Thakur confronted Tehsildar Rajiv Ranta, he made a hasty retreat from tehsil on seeing them.

When questioned by the directors he asserted that the staff concerned was on leave and he could not take possession of the property today. This peeved the directors and bank staff who tried to reason with him to execute his orders, but it yielded no results.

Terming it as a deliberate attempt to help the defaulter secure relief from the court, Krishan Grover asked how could the staff absent themselves when notice had been issued 15 days ago? Grover said he would move an RTI to seek details of why staff was not available despite being informed well in advance.

Echoing similar sentiments Surinder Thakur said, “The bank’s dire financial scenario will fail to improve if there is deliberate delay in taking possession of defaulters’ properties.” In yet another case the tehsildar was yet to issue possession orders for another property owned by a political leader who also owned crores to the bank. With a non-performing assets of Rs 126 crore, the bank is struggling to improve its financial condition as its 80,000 account holders have been unable to withdraw their money despite fighting exigencies.