Garhwal Post Bureau
Dehradun, 21 July 2025: The Dehradun district administration has sealed the Rajpur Road branch of CSL Finance Ltd after the institution was found to be harassing a widow and refusing to honour the terms of an insured loan taken by her late husband. The punitive action, ordered by District Magistrate Savin Bansal, has been reportedly initiated following multiple violations and disregard for directives issued by the District Magistrate in response to the woman’s persistent appeals for justice.
The matter had come to light on 11 July when Priya, a grieving widow and mother of four young children, appeared before District Magistrate Savin to narrate her plight. She informed the Magistrate that her husband, Vikas Kumar, had passed away unexpectedly on 12 July 2024, leaving behind a housing loan of Rs 6.50 lakhs from CSL Finance Ltd. She also informed him that the loan had been mandatorily insured at the time of sanction, with the premium duly deducted and the remaining amount disbursed post-verification by the insurance company. Despite this, the bank not only refused to release the insured sum but also seized the house documents and persistently denied issuing a No Dues Certificate to Priya, thereby prolonging her financial suffering.
Frustrated by over a year of inaction and alleged harassment, Priya approached the administration seeking redress. Upon review of documents and verification from the insurance company, it was confirmed that the loan was fully insured. It was also confirmed that the insurance policy covered default due to the borrower’s death. The District Magistrate subsequently issued a Recovery Certificate (RC) against the bank manager for Rs 6.50 lakhs, ordering compliance within a week. When the bank failed to respond, the district administration exercised its authority under Section 5 of the Uttar Pradesh Recovery of Dues Act, sealing the CSL Finance Ltd branch office on Rajpur Road as a coercive measure. Legal proceedings are now underway, and the branch may face auction if the recovery remains unsettled.
Sources within the administration further claimed that the finance company in question, CSL Finance Ltd, had previously also been warned under the Banking Regulation Act, 1949, for non-cooperation in similar disputes. In the present case, the bank’s actions could also invite penal consequences under Section 406 and Section 420 of the Indian Penal Code for criminal breach of trust and cheating, respectively, especially given its refusal to return legally insured amounts and property documents.
The action by the Dehradun administration has sparked widespread public support and heightened awareness about the misuse of financial authority against vulnerable individuals. The district administration has reiterated its commitment to safeguarding the rights of citizens, particularly those facing distress due to systemic indifference. This case can become a precedent for similar unsettled claims.
