Hotel Lhasa in Gangtok seized by State Bank of Sikkim over loan default
This is not the first instance of SBS taking action against defaulters.
LOCAL
Hotel Lhasa, situated in Gangtok's metro area, has been officially seized by the State Bank of Sikkim (SBS) after the owners failed to repay a loan of approximately Rs 6 crore taken in 2017. The seizure follows multiple unsuccessful attempts by the bank to recover the outstanding amount.
The bank initiated formal proceedings to take over the property following repeated reminders and legal notifications sent to the owners. Despite numerous efforts at negotiation and resolution, the hotel’s management did not clear the dues which compelled the bank to act under the applicable recovery laws.
On the day of the takeover, SBS Managing Director Phurba Wangdi Bhutia, Chairman DB Gurung, and the bank’s recovery team led the execution of the property seizure. The team conducted all formalities in adherence to the legal framework, ensuring that the property was officially placed under the bank's control.
This is not the first instance of SBS taking action against defaulters.
Earlier on December 27, 2024, SBS took control of the prominent Hotel Sobralia property in Namchi after the owners defaulted on a loan of approximately Rs 40 crore. Managing Director Phurba Wangdi Bhutia, Chairman DB Gurung, and the bank's recovery team executed the property seizure.
The loan, dating back to 2010, had remained unpaid despite repeated efforts by SBS to facilitate repayment. With no resolution forthcoming, the bank was compelled to intervene. Bhutia emphasized the need to clear outstanding dues before any transactions involving the property could proceed.
“If the owners fail to repay the loan, the bank will initiate the auctioning of the property to recover the amount,” said Bhutia. This decisive action underscores SBS’s commitment to enforcing loan repayment protocols and ensuring financial stability.
Hotel Sobralia, a notable establishment in Namchi, will remain under SBS’s control until further developments.
Earlier in May, 2024 SBS faced another significant financial challenge when approximately Rs 69 crore was allegedly embezzled by three senior officials of the state-run bank. The bank filed an FIR with the CID Sikkim Police against the accused officials, further demonstrating SBS’s determination to safeguard its financial interests.