In response to multiple reports of former Chairman Pratip Chaudhuri being arrested in a loan scam case, the company on Monday issued a clarification, saying the assets were sold with due process in March 2014, after Chaudhuri retired from the bank in September 2013.
Times of India reported that Chaudhuri was arrested from his Delhi residence in an alleged loan scam involving a hotel in Jaisalmer. “Garh Rajwada was a hotel project in Jaisalmer, financed by the Bank in 2007. The project remained incomplete for over three years and the key promoter passed away in April 2010,” SBI said. Further, SBI says that the account slipped into an NPA in June 2010 and various steps taken by the bank to complete the project did not yield results.
The State Bank said the account dues were assigned to ARC in 2014 and it was done through a laid down process of the Bank’s policy. “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,” SBI said in a statement.