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Cooperative bank loans default: PSPCL to deduct amount from salaries, pensions of employees
As per the list of cooperative department, submitted to PSPCL, 844 employees have defaulted on loans amounting to ₹9.44 crore
As many as 844 employees of Punjab State Power Corporation Limited (PSPCL) are on the defaulter list of Punjab State Cooperative Bank Limited.
The cooperative department has handed over the list of PSPCL employees at its Patiala-based headquarters having the total loan default amount of ₹9.44 crore, taken from several branches of the banks, situated across the state over the years.
Based on the list provided by the state government, the PSPCL administration has issued notices to the defaulter employees for not paying the instalments. The loans were mainly taken for personal, home construction and renovations.
On December 22, the PSPCL issued directions to all the officers having drawing and disbursing powers to facilitate the deductions of default amount from the salary, retrial dues, and pensions of respective employees, retirees and pensioners on the requisitions from the cooperative banks.
One of the officials said the hundreds of employees had taken loans from cooperative banks, situated at the location of their respective postings, but after transfers to other stations, the employees defaulted on these loans and have failed to repay the amount.
“It is a serious issue, and we have directed all the officers having drawing and disbursing powers to ensure the recovery of amount. Most of the employees have retired, while some are settled abroad,” he said.
In a letter to the department of power on October 18, Anurag Aggarwal, special chief secretary, stated that these defaulting employees have, at the time of availing loan from cooperative banks, had given an “irrevocable authority” to their employer to deduct instalment of loan from their salaries.
“This ‘irrevocable authority’ is provided in section 39 of Punjab Cooperative Societies Act that says that if the employer fails to deduct loan instalments then the bank has the right to recover the amount from the employer as ‘arrears of land revenue’, the letter stated.
The letter further added that after discussion between the director treasury and accounts and other concerned departments, it came to the fore that the banks need to get prior approvals from the department of finance and personnel for deduction of instalments from the salary and other financial benefits of the defaulting employees.
“Even the legal opinion was sought in which it was emphasised that the administrative department of the government should direct the DDOs of PSPCL to deduct pending loan instalments from salaries of the employees following which the power department has been directed to issue the guidelines,” he said.
