Bank Officials Seize Gates of Defaulters’ Homes in Shocking Loan Recovery Tactic
NEWS CHARIOT : In a bizarre and controversial move, officials from a local bank in Jangaon district resorted to an extreme method to recover an unpaid loan by seizing the gates of defaulters’ homes. The unusual incident took place in the village of Edunuthula, located in the Kodakandla mandal, and has left the villagers shocked and outraged.
The defaulters, Narsaiah and Sampath, had provided guarantees for two Self-Help Groups run by M. Prema Latha and M. Kalamma. These groups had taken out a ₹6 lakh loan from the District Cooperative Central Bank (DCCB) in 2021 to purchase buffaloes, but with the buffaloes no longer producing milk, the borrowers failed to repay their EMIs. Despite repeated notices, Prema Latha and Kalamma ignored the warnings, leading the bank officials to take drastic action.
Frustrated by the lack of response from the borrowers, the bank officials arrived in the village on Wednesday with a tractor and began attempting to seize the gates of the homes of the guarantors, Narsaiah and Sampath. Rather than pursuing the usual route of asset seizure like household goods or vehicles, they took the extreme step of removing Kalamma’s gate, sparking confusion and outrage.
As Prema Latha made partial payments and requested more time, the officials continued with their actions. The viral video of this shocking act soon circulated on social media, drawing widespread attention to the bank’s unconventional recovery method.
Locals have expressed their outrage, condemning the bank officials’ actions and calling for legal accountability. The villagers are demanding that stricter regulations be enforced to ensure debt collection practices are fair, legal, and non-threatening, urging authorities to take immediate action against the officials involved.
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