Solan — In a major crackdown, the Solan-based Baghat Bank has initiated stringent action against loan defaulters, with arrest warrants issued for 12 individuals who collectively owe crores of rupees. The Assistant Registrar Cooperative Societies (ARCS) has ordered that these defaulters be jailed, triggering widespread discussion and concern among residents and account holders in Solan.
According to reports, four more defaulters are under scrutiny and could soon face vehicle seizures and arrest warrants. Out of 147 cases forwarded by Baghat Bank to the Cooperative Society, 79 files were examined, and 12 emerged as serious cases of non-payment. The action has been taken under the provisions of the Land Records Acquisition Act, 1954 (75A).
On Friday, a delegation led by Baghat Bank President Arun Sharma met ARCS Shimla DC Negi, after which a formal letter was sent to the Solan Superintendent of Police requesting the immediate arrest of the defaulters. Sources said these 12 individuals collectively owe between ₹30 crore and ₹33 crore to the bank.
The development comes amid growing concerns among account holders following the bank’s recent decision to limit withdrawals to ₹10,000 every six months — a measure that has fueled uncertainty over the institution’s financial stability.
Currently, Baghat Bank holds government security worth ₹145 crore, deposits amounting to ₹100 crore, and ₹15 crore placed in other banks.
Chairman Arun Sharma has urged the public to remain calm, assuring that depositors’ money is secure. “Baghat Bank has nearly 80,000 account holders with deposits of about ₹475 crore. There is no reason to panic. The recovery process from defaulters is being carried out swiftly to ensure complete financial safety,” he said.
The crackdown is being seen as one of the most decisive actions in recent times by a cooperative bank in the region, reflecting the authorities’ growing determination to recover public money and restore faith among depositors.
