State Bank of Sikkim seize hotel Sobralia over Rs 40 crore loan default

The State Bank of Sikkim (SBS) has taken control of the prominent Hotel Sobralia property in Namchi after the owners defaulted on a loan of approximately Rs 40 crore. 

The property seizure was executed under the leadership of SBS Managing Director Phurba Wangdi Bhutia, Chairman DB Gurung, and the bank's recovery team.

The loan, which dates back to 2010, had remained unpaid despite repeated efforts by the bank to facilitate repayment. 

With no resolution forthcoming, SBS was compelled to intervene. Managing Director Phurba Wangdi Bhutia emphasized that no transactions involving the property will be allowed until the outstanding dues are cleared.

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“If the owners fail to repay the loan, the bank will initiate the auctioning of the property to recover the amount,” stated Bhutia.

This decisive action highlights SBS's commitment to enforcing loan repayment protocols and maintaining financial stability within the institution. 

The recovery of the dues is expected to send a strong message to borrowers about the importance of adhering to repayment obligations.

Hotel Sobralia, a notable establishment in Namchi, will remain under SBS’s control until further developments occur.