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BSP MLA fails to pay loan, faces land auction

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  • The Hardoi administration has decided to auction land of BSP legislator Satish Chandra Verma on August 29, as he failed to repay Rs 26.7 lakh to a bank by July 30, in spite of an order by the Supreme Court.

    The administration has sent the auction order to the Mallawan MLA, who had taken a loan of Rs 10 lakh from Nagar Vikas Sahkari Bank in 1999.

    “Besides sending the auction order, I also informed him over telephone,” said Ram Swaroop Verma, Hardoi Tehsildar. The four hectare land is located in Sunasi Matiya village in Bilgram Teshil.

    The tehsildar said they would publish the auction order in newspapers and also make a public announcement. A deputy tehsildar has been appointed to look after the auction.

    Earlier, the administration had sent a notice to Verma after the SC upheld an order of the Lucknow Bench of the Allahabad High Court, directing the district administration to help the bank recover the amount, which includes the principal, the interest and the amount the bank had spent in pursuing the case.

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    Verma had taken the loan in the name of his firm Good Refractories Limited by mortgaging his land.

    After two years, he stopped paying the installments. Subsequently, the bank had filed a case against him and obtained a decree in its favour. The MLA, however, challenged it in higher courts.

    Finally, the bank got an order in its favour from the Supreme Court on July 10.

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