Himachal Pradesh News
Solan News : 20 Baghat Urban Cooperative Bank loan defaulters summoned during three-day Lok Adalat
Twenty loan defaulters of Baghat Urban Cooperative Bank were summoned during a three-day Lok Adalat as authorities step up recovery efforts amid RBI restrictions.
In an effort to expedite loan recovery, 20 defaulters of the Baghat Urban Cooperative Bank were summoned on the first day of a three-day Lok Adalat by the Assistant Registrar, Cooperative Societies (ARCS), here.
While several defaulters sought time to clear their outstanding dues under the one-time settlement (OTS) scheme launched by the bank last month, others who have failed to repay any amount despite repeated notices are likely to face stringent action. This may include the attachment of properties belonging to their guarantors.
ARCS Girish Nadda said the Lok Adalat is being used as a mechanism to recover dues from nearly 150 loan defaulters. “Attachment proceedings in respect of 12 properties belonging to defaulters summoned earlier have already been completed, and these cases will now be forwarded to the Divisional Commissioner for initiating the auction process,” he said.
The bank is currently functioning under severe regulatory restrictions imposed by the Reserve Bank of India (RBI), including a withdrawal cap of Rs 10,000 per depositor for six months, a ban on fresh lending, and other financial curbs. As part of corrective measures, the ARCS has been scrutinising loan files to identify irregularities in loan disbursement.
Nadda said scrutiny of loan portfolios worth Rs 70 crore to Rs 80 crore has been completed to fix accountability of erring bank staff and the board of management. “A draft report detailing the violations and lapses will be submitted to the state government for further action,” he added.
Meanwhile, the bank has scheduled the third round of auction of 14 mortgaged properties on January 2, 2026. Managing Director Rajkumar said that after successfully auctioning four properties for Rs 4.13 crore on December 12, the bank is hopeful of recovering a substantial amount through the upcoming auctions. “These steps are aimed at restoring the bank’s financial health in compliance with RBI directions,” he said.
The RBI imposed financial restrictions on the bank following a sharp deterioration in its financial condition and a surge in non-performing assets (NPAs). Since October 8, the bank’s gross NPA has declined from Rs 138 crore to Rs 123 crore, while net NPA has improved from 12.91 per cent to 9.5 per cent. Despite the improvement, the figures remain significantly above the healthy benchmark of below 2 per cent.
