Image courtesy: SBS Website

Gangtok, May 30:

The State Bank of Sikkim (SBS) has lodged an FIR against ten major loan defaulters on May 29 at the Sadar Police Station, East Sikkim. The FIR was lodged due to misappropriation of the borrowed sum and for not paying of EMIs. The loan amount of the ten defaulters varies from a minimum of Rs. 50 lakhs to a maximum of Rs. 6 crores making it a total of Rs. 20 crores.

Chief General Manager of SBS, P. Wangdi explained that the ten defaulters have borrowed money from the bank and not used it for the reason or place where it supposed to be used, or have misappropriated the borrowed funds amongst other offences. The loan amount which SBS gave was for Asset Creation but it was not followed by the borrowers.

When asked why the FIR was filed and not a complaint under the Sikkim Public Demand Recovery Act with permission from the District Collector, Wangdi said, “There are two types of defaulters who take out bank loans – one is the normal defaulter who does want to pay back the loan amount but cannot, like those whose business has been affected or the business doesn’t generate income despite best efforts and the other defaulter is what we in banking terms call ‘willful defaulters’ who purposely evade repayment of the loan amount or misappropriated fund and the asset for which the loan is taken out, is not created. Therefore to check where the funds were used and what asset was created we need the help of the law and order authorities, hence the FIR was lodged.”

Wangdi also informed us that the defaulters do have security mortgage in return for the loan amount, but it is not enough for the amount that was loaned due to asset not being created on the securities. He says that the bank took the legal route as a course of action and will try to recover the loan amounts. Wangdi concludes with, “We hear around, that the loans taken from SBS are taken lightly, but the Sikkimese society should understand that no bank tolerates misappropriation and the loaner is creating problems for themselves.”

The investigation is currently underway.

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