The State Bank of Sikkim (SBS) has taken possession of the Hotel Sobralia in Namchi, one of its largest loan recovery actions to date. The seizure, finalized on December 27th in Gangtok, follows years of unpaid debt owed by the hotel’s owners. The outstanding loan, totaling approximately 40 crore rupees, has been in arrears since 2010.
SBS Managing Director Phurba Wangdi Bhutia, along with Chairman DB Gurung and the bank’s recovery team, spearheaded the operation. Despite numerous attempts at amicable resolution and debt recovery, the owners failed to meet their repayment obligations, leaving SBS with no alternative but to seize the property.
Mr. Bhutia emphasized that all transactions concerning Hotel Sobralia are suspended until the outstanding loan is settled. Should the owners continue to default, SBS has indicated that the property will be auctioned to recover the funds. This decisive action highlights the bank’s commitment to responsible lending practices and the maintenance of its financial stability. The seizure underscores the seriousness with which SBS addresses loan defaults and its determination to recover outstanding debts.