State Bank of Sikkim seizes Hotel Sobralia over Rs 40 crore loan default
The hotel’s owners had secured a loan amounting to approximately Rs 40 crore in 2010.
LOCAL
The State Bank of Sikkim (SBS) has officially taken possession of the iconic Hotel Sobralia in Namchi after the property owners defaulted on a substantial loan. The action, spearheaded by SBS Managing Director Phurba Wangdi Bhutia, Chairman DB Gurung, and the bank's recovery team, marks a decisive step in addressing the prolonged non-repayment issue.
The hotel’s owners had secured a loan amounting to approximately Rs 40 crore in 2010. However, despite repeated attempts by the bank to recover the dues, the borrowers failed to meet their repayment obligations. After years of default, SBS exercised its authority to take control of the property under existing financial regulations.
Speaking on the matter, Phurba Wangdi Bhutia clarified that no transactions or deals involving the hotel property can occur until the outstanding amount is fully cleared. “The property will remain under the bank’s control, and if the dues are not paid, we may proceed with auctioning it to recover the loan,” Bhutia said.