Bank takes ‘symbolic’ control of institute, land, equipment

Trust running the college failed to repay a loan of ₹45cr to PNB

CHANDIGARH: A day after the Punjab government set in motion the process to shut down Gian Sagar Medical College, Banur, by issuing a show-cause notice for withdrawal of all permissions, the management got into trouble with a bank too. Punjab National Bank (PNB) issued a public notice that said it has taken symbolic possession of the college property since the trust running the college failed to repay a loan of ₹45 crore.

“Any dealing with the college will be subject to the clearance of bank debt,” the notice added. Among properties attached by the bank are hospital equipment and a large chunk of college land.

As per a recent state government audit, the college is under a debt of ₹108 crore, which includes ₹30 crore of salaries not paid since last October.

The PNB notice, put up at the college entrance on Tuesday by the bank’s officials, further stated that the management was issued a notice on August 17 last year seeking the money within two months.

“However, the borrower did not pay any heed to bank notice and hence the bank has now initiated process to take procession of the college property which is mortgaged with the bank,” said a senior PNB official at its Chandigarh branch.

While college chief executive officer Manish Jhakhar could not be reached despite several attempts, BJP leader Swarn Salaria, who has joined the trust for revival, told HT that he would clear his stand only before the state government.

Classes remain suspended in the college since February 1 after faculty and staff went in for indefinite protest over their pending wages. More than 60% faculty, including the dean and principal, have already resigned.

The department of medical education and research will cancel all permissions to the college if the management fails to give satisfactory reply to its notice within a week.

PNB AUTHORITIES SAY MANAGEMENT WAS ISSUED A NOTICE ON AUGUST 17 LAST YEAR SEEKING THE MONEY WITHIN TWO MONTHS