Loan defaults spike, SC/ST Corp launches crackdown

Loan defaults have emerged as a major concern in Solan and neighbouring districts, with the Himachal Pradesh Scheduled Castes and Scheduled Tribes (SC/ST) Development Corporation battling to recover long-pending dues. After the Baghat Urban Cooperative Bank faced similar trouble earlier, the corporation is now staring at a mounting loan burden and a rising number of non-performing assets.

Over 500 borrowers together owe nearly Rs 9 crore, with some cases dating back as far as 2000 and 2005. The corporation’s NPAs have already touched Rs 10 crore. To push recovery, arrest warrants have been issued against 27 defaulters from Shimla, Solan, Sirmaur and Kinnaur districts under Section 75(A) of the Land Revenue Act, 1954.

Managing Director Ajay Yadav said it was “alarming” that several borrowers had not deposited even a single instalment since taking loans between Rs 5 lakh and Rs 25 lakh. While about 10-15% of the defaulters face genuine hardships such as illness or natural calamities, nearly 80% are classified as wilful defaulters who continue to evade payment in anticipation of a future loan waiver.

Two Kinnaur defaulters who received warrants appeared before the office and deposited a token amount as an initial step. Shimla accounts for the highest number of defaulters (10), followed by Solan (8), Sirmaur (7) and Kinnaur (2). The biggest overdue loans, Rs 25 lakh each, are from borrowers in Kinnaur and Sirmaur.

Yadav said most defaulters had repeatedly ignored three successive notices. “Their persistent non-cooperation has forced the corporation to take strict action,” he said. The corporation is monitoring another 70 borrowers who owe between Rs 5 lakh and Rs 25 lakh. If recovered, this alone could bring in Rs 4–5 crore.

With Rs 9 crore stuck across 504 defaulters, authorities say recovery drives have now been intensified.