Congress nominee charged with Rs 100 crore loan default in Manipur

GUWAHATI: The Punjab National Bank's northeast circle has charged Congress candidate for the

Outer Manipur LS seat

,

Keishing James Lalrongbawl

, with

defaulting on a loan amount

of Rs 116.31 crore.

The PNB, in a letter to the Election Commission (EC) on March 28, stated that it had sanctioned a cash credit loan of Rs 100 crore and a term loan of Rs 17 lakh in favour of North East Region Financial Services Limited in which Lalrongbawl was a director and personal guarantor. It added that the account turned a Non-Performing Asset (NPA) due to non-payment on September 30, 2016. The bank has requested the EC to prevent Lalrongbawl from contesting the polls.

The bank said despite a lapse of almost three years since the date of NPA, the company and its directors have failed to repay the money. "As such, we are now in the process of declaring them as wilful defaulters as per guidelines of the RBI. As on date, the total recoverable dues from the defaulters is Rs 116.31 crore and interest thereof since 30-09-2016," the bank stated in the letter. It said it has also filed a recovery suit (OA-582/17) at the Debt Recovery Tribunal, Guwahati, on December 30, 2017.

"We have also deciphered that Shri Lalrongbawl has resigned from the directorship of M/S North East Region Fin Services Limited on 02.03.2019 without informing the bank which is against the terms of sanction if the said loan is availed by M/S North East Region Fin Services Limited," the bank's letter said.