Chargesheet against 3 coop bank officials for fraud in Solan
The police have filed a chargesheet against three employees of Baghat Urban Co-operative Bank in Solan, holding them responsible for cheating a customer.
On 7 September 2022, Solan resident Abhay Sharma lodged a complaint alleging in 2019 he had availed of a loan of Rs 1.35 crore from the bank, mortgaging his land as collateral. Due to the Covid outbreak the same year, he was unable to repay the instalments, following which the bank issued him a notice under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2012. The Act permits financial institutions to recover non-performing assets by auctioning secured properties without court intervention.
On May 12, 2022, the bank sold Sharma’s mortgaged land through auction. However, six days later, the bank’s Board of Management (BoM) — its apex decision-making body — revoked the auction, citing procedural irregularities. Despite the cancellation, bank officials failed to annul the sale. Even after Sharma paid Rs 57 lakh to settle the dues, a sale certificate for the auctioned land was issued in August 2022.
As a result, Sharma was deprived of his property, measuring approximately 19 bighas, located in Kandaghat.
A case under Section 420 of the Indian Penal Code (IPC) for cheating was registered by the Solan police in September 2022. The investigation revealed the bank officials had acted in violation of internal banking norms and the explicit direction of the BoM by proceeding with the auction. The mortgaged land was ultimately sold to a firm based in Delhi, causing financial loss to Sharma.
“After thoroughly investigating various aspects of the case, the police have filed a chargesheet against three bank officials — comprising the then additional general manager, deputy general manager and another employee,” said Solan Superintendent of Police Gaurav Singh.
The Baghat Urban Co-operative Bank, already grappling with a high rate of non-performing assets (NPAs), was fined Rs 3 lakh by the Reserve Bank of India in 2022 for deficiencies in regulatory compliance.
Himachal Tribune