Sunil Chadha
Dharamshala: Kangra Central Cooperative Bank has started action against Hotel R.S. Belvedere in Dharamshala after the hotel failed to repay large loans taken from the bank.
According to the bank, between 2013 and 2016, the hotel owners borrowed around ₹18.55 crore under different loan schemes. In addition, another ₹5 crore was given in the name of R.S. Construction, a related firm.
But since November 2016, the hotel has not repaid the loans, leaving the accounts in default.
The bank said it tried several times to recover the money.
Notices were served under the SARFAESI Act — a law that allows banks to take over properties of defaulters.
First, a legal notice (Section 13(2)) was issued, and later the bank took symbolic possession of the hotel property (Section 13(4)).
Officials said the borrowers were given chances to settle the dues. Against an outstanding of ₹24.21 crore, they paid about ₹21.70 crore. But as the full amount was not cleared, the case remained unsettled.
Over time, the dues, including interest, rose to ₹29.16 crore spread across 217 accounts.
The borrowers also approached the Debt Recovery Tribunal (DRT) in Chandigarh and later the Himachal Pradesh High Court. However, both forums dismissed their petitions, clearing the way for the bank to proceed with recovery.
Now, the accounts have been declared Non-Performing Assets (NPAs) and closed as per banking rules. The bank clarified that all steps have been taken according to law and Reserve Bank of India (RBI) guidelines.
“The bank has worked strictly as per rules, and there is no irregularity in the recovery process,” the press release said.
The case has once again highlighted the challenges cooperative banks face in recovering large loans.
When borrowers fail to repay on time, the burden ultimately affects not just the bank but also ordinary depositors and the financial health of the institution.
