CHANDIGARH: Congress MLA Fateh Jang Bajwa along with his family members not only failed to clear around Rs 30.80 crore outstanding loan owed to the Punjab and Sind Bank in Chandigarh, the Qadian legislator also chose not to disclose this loan as a liability in his election affidavit filed on January 16, 2017.

The bank had sanctioned a term loan of Rs 50 lakh with additional cash credit limit of Rs 1.03 crore in January 1995 to Bajwa Agro Industries Ltd at Qadian. The company, owned by Fateh Jang and promoted by his brother Partap Singh Bajwa , a Rajya Sabha MP, was set up in March 1993 and was engaged in edible oil and solvent extraction.

Since the loan has not been paid back over last 23 years, the Chandigarh Debt Recovery Tribunal (DRT) had warned on March 6 that if Fateh Jang, Partap Singh, their mother Gurbachan Kaur, Fateh Jung’s wife Haneela and Ferozepur resident Jagdish Bishnoi do not appear in person at the next hearing on March 13, it will pass an ex-parte order.

Fateh Jang, in his election affidavit, has shown in investment column that he owned 5,72,619 shares of Rs 10 each in Bajwa Agro Industries Limited, amounting to Rs 57,26,190. However, in his liabilities column he did not mention the loan owed to Punjab and Sind Bank.

He only included Rs 15.13 lakh outstanding loan owed to Dena Bank as on December 23, 2016 in the affidavit.

When contacted, Fateh Jang said, “We are ready to pay. Negotiations are going on with the bank. Since case is pending before the Chandigarh Debt Recovery Tribunal, it cannot be called my liability as of now.”

However, former Chandigarh MP and senior advocate Satya Pal Jain was clear on the issue. “The law is very clear and requires a candidate contesting election to disclose all assets and liabilities in the election affidavit.”

Also, practicing company secretary Vikas Rai Berry of Berry Associates said once the notice for recall of loan has been issued by a bank and proceeding in context of the deed of guarantee has started, the loanee or the guarantor cannot say that they do not recognise it as liability in his books of accounts.

In May 1999, Fateh Jang, Partap Singh, Gurbachan Kaur and Haneela stood as guarantors for the total loan facilities and admitted their liability as guarantors for Rs 2.04 crore along with interest in favour of the Punjab and Sind Bank. Bishnoi also had mortgaged his property in Kharar for the loan.

The bank has claimed that in September 2005 it had asked the company to pay Rs 1 crore within 24 months under the one-time settlement scheme, but it failed to pay up. It has now sought recovery of the outstanding amount of Rs 30.80 crore along with interest and penal interest of 20% per annum. It was argued before the DRT that the total distress sale value of all the three mortgaged properties of the company, Haneela and Bishnoi is Rs 2.97 crore. Thus the bank has now sought directions for attachment of these properties.

