SBI issues clarification regarding former chairman Pratip Chaudhuri's case
Former SBI chairman Pratip Chaudhuri had been arrested in an alleged loan scam case involving a hotel in Jaisalmer, Rajasthan.
- Nov 1, 2021,
- Updated Nov 2, 2021 6:48 PM IST
The State Bank of India (SBI) on Monday issued a clarification after multiple media outlets reported that its former chairman Pratip Chaudhuri was arrested in an alleged loan scam case involving a hotel in Jaisalmer, Rajasthan.
As per reports, Chaudhuri has been accused of selling a Godawan Group hotel property worth Rs 200 crore for Rs 25 crore after declaring it a non-performing asset (NPA). However, SBI, in a statement, said that the hotel property was sold with due process in March 2014 after the retirement of Chaudhuri in September 2013.
"'Garh Rajwada' was a hotel project in Jaisalmer, financed by the bank in 2007. The project remained incomplete for over 3 years and the key promoter passed away in April 2010," it said.
The bank added that the account slipped into NPA in June 2010 and SBI took various steps to complete the project as well as to recover its dues. However, its efforts didn't yield any results. As part of the recovery efforts, the dues were assigned to an ARC for recovery in March 2014. This sale to ARC by SBI was done through a laid down process as per the policy of the Bank, the bank said.
"As recovery efforts failed, approvals for sale to ARC were taken in Jan 2014, the assignment to ARC was completed in March 2014. It transpires now that the borrower had initially filed an FIR with the State Police against the sale of asset to ARC," the bank said.
It added that all the directors of the ARC, including Chaudhuri, who joined its board in October 2014, have been named in the said case. However, Chaudhuri had retired from SBI's service in September 2013.
The lender stated that it appears from the copies of the proceedings that there are some "factual inaccuracies" in the complainant's version submitted to the court.
"In as much as SBI was not a party to this case, there was no occasion for the views of SBI being heard as part of this proceedings. SBI would like to reiterate that all due process were followed while making the said sale to ARC," the statement said.
The bank offered its cooperation to the law enforcement and judicial authorities and said it will provide further information if needed.
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The State Bank of India (SBI) on Monday issued a clarification after multiple media outlets reported that its former chairman Pratip Chaudhuri was arrested in an alleged loan scam case involving a hotel in Jaisalmer, Rajasthan.
As per reports, Chaudhuri has been accused of selling a Godawan Group hotel property worth Rs 200 crore for Rs 25 crore after declaring it a non-performing asset (NPA). However, SBI, in a statement, said that the hotel property was sold with due process in March 2014 after the retirement of Chaudhuri in September 2013.
"'Garh Rajwada' was a hotel project in Jaisalmer, financed by the bank in 2007. The project remained incomplete for over 3 years and the key promoter passed away in April 2010," it said.
The bank added that the account slipped into NPA in June 2010 and SBI took various steps to complete the project as well as to recover its dues. However, its efforts didn't yield any results. As part of the recovery efforts, the dues were assigned to an ARC for recovery in March 2014. This sale to ARC by SBI was done through a laid down process as per the policy of the Bank, the bank said.
"As recovery efforts failed, approvals for sale to ARC were taken in Jan 2014, the assignment to ARC was completed in March 2014. It transpires now that the borrower had initially filed an FIR with the State Police against the sale of asset to ARC," the bank said.
It added that all the directors of the ARC, including Chaudhuri, who joined its board in October 2014, have been named in the said case. However, Chaudhuri had retired from SBI's service in September 2013.
The lender stated that it appears from the copies of the proceedings that there are some "factual inaccuracies" in the complainant's version submitted to the court.
"In as much as SBI was not a party to this case, there was no occasion for the views of SBI being heard as part of this proceedings. SBI would like to reiterate that all due process were followed while making the said sale to ARC," the statement said.
The bank offered its cooperation to the law enforcement and judicial authorities and said it will provide further information if needed.
Also Read: SBI Kisan Credit Card: Features, How to apply and other details
Also Read: Informal sector share shrinks to 20% from 52% in FY2018: SBI Ecowrap