Union Bank of India takes over NRDA's property after loan default

Chhattisgarh’s swanky new capital, Nava Raipur, is in focus for all the incorrect reasons after the Union Bank of India took ‘symbolic possession’ of a defaulter property of Naya Raipur Development Authority (NRDA) after it failed to repay a loan of Rs 317.79 crore.

Union Bank of India’s mid-corporate branch released a public notice in newspapers on taking symbolic control of 2.659-hectare land of NRDA after releasing a demand notice on August 2, 2021, asking for repayment within two months.

Created as a greenfield state-of-the-art capital of Chhattisgarh, the idea Nava Raipur was created by the then chief minister Ajit Jogi instantly after the state was carved out of Madhya Pradesh in November 2000. The Raman Singh government, which headed the state for 15 years, implemented the capital project and built large-scale infrastructure to make it a well-planned city for the future. NRDA handles the affairs of the capital project.

BJP vice-president and former CM Raman Singh told the media that the bank is taking over government property for default of the loan.

Opposition leaders told the media that the state government is already deep in debt as it has availed loans of over Rs 51,000 crore between December 2018 and October 2021.

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Also read: Loan defaults on affordable housing rose 7.2% in June: ICRA