In response to several reports from the former president Pratip Chowdhary After being arrested in a loan scam case, the company on Monday issued a clarification, stating that the property was sold with due process in March 2014. Chieftain Retired from the bank in September 2013.

The Times of India reported that Choudhary was arrested from his Delhi residence in an alleged loan scam involving a hotel in Jaisalmer. “Garh Rajwada was a hotel project in Jaisalmer, which was financed by the bank in 2007. The project remained incomplete for more than three years and the principal promoter passed away in April 2010,” State Bank Of India said. Further, SBI maintains that the account slipped into NPA in June 2010 and various steps taken by the bank to complete the project did not yield results.

State Bank said that the account dues were assigned to arch in 2014 and this was done through a prescribed procedure of the Bank’s policy. “As the recovery efforts failed, approval for sale to ARC was taken in January 2014, the assignment to ARC was completed in March 2014. It is now learned that the borrower had initially filed against the sale of the property to ARC. An FIR was registered with the state police,” SBI said in a statement.