Kangra Coop Bank settled 5,461 bad loan cases, waived Rs 185 cr: Sukhu

Kangra Central Cooperative Bank (KCCB) has settled 5,461 loan cases, which had become non-performing assets (NPA), under the One Time Settlement Scheme, said Chief Minister Sukhvinder Singh Sukhu in the House while replying to a question of Una MLA Satpal Singh Satti here today.

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The Chief Minister said that more than Rs 198.37 crore of loans were settled while Rs 185.38 crore was waived. Of the total 5,461 cases settled under the One Time Settlement Scheme, 4,420 were settled and closed. In settled and closed cases, the beneficiaries had paid around Rs 112.12 crore while Rs 122.15 crore was waived.

He said that only interest on bad loans was waived and the principal amount was still payable. He added that before September 9, 2022, the KCCB could settle loans only up to Rs 10 lakh. However, the previous BJP government finished the settlement limit due to rising NPAs of the KCCB, he added.

The issue of the KCCB waiving loans was raised in the House as the bank had also settled the loan of former Congress MLA Satpal Raizada. The BJP alleged that the KCCB had waived about Rs 3.5 crore loan of Satpal Raizada under the One-Time Settlement Scheme, which amounted to corruption. The Chief Minister, however, said that Raizada’s loan was partially waived, as per the RBI guidelines and under the One Time Settlement Scheme of the bank.

Satti said that the government should extend the One Time Settlement Scheme to people having taken small loans but were unable to pay due to difficult circumstances or the death of the sole earning member of the family.

The Chief Minister assured the House that the government would try to extend the bank’s schemes keep in view the problems faced by people who had taken small loans.