Activists demand transparency over State Bank of Sikkim’s loan defaulters’ list

Political and social activist Sonam Gyatso Bhutia has raised concerns over the lack of transparency in the disclosure of the State Bank of Sikkim’s (SBS) loan defaulters’ list. 

Despite a clear directive from the Sikkim Information Commission (SIC), SBS has failed to provide the requested details. 

Other RTI applicants, Sangay Gyatso Bhutia and Passang Gyali Sherpa have also voiced their dissatisfaction over the bank’s non-compliance.

A hearing was conducted by the SIC on November 8, 2024, where Chief Information Commissioner YB Gurung and State Information Commissioner Kuber Bhandari reviewed complaints regarding SBS’s refusal to share the defaulters’ list. The issue escalated when SBS, in its response on October 28, 2024, stated its inability to disclose the information. 

Following this, a formal complaint was lodged, and the commission ruled that all relevant documents be provided to the applicants by January 25, 2025. The ruling also mandated that the names of defaulters be made public.

However, as January 25 and 26 were holidays, Bhutia and other activists assumed the bank would require some time to comply. When no response was received after the holidays, a contempt letter was submitted, highlighting the prolonged delay. “It has been almost a year since we filed the RTI, yet SBS has not replied,” Bhutia stated.

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Bhutia also pointed out discrepancies in past RTI responses. “Nabin Pradhan filed an RTI in 2019 and received a reply. But we have not. Why is there this bias?” he questioned. He also dismissed allegations that seeking the defaulters’ list was an attempt at extortion. “How can asking for a list of defaulters be linked to extortion? This is a very strange and baseless accusation,” he added.

On January 29, Bhutia and other activists visited the SIC office, where they witnessed SIC officials engaging in a heated phone debate with SBS officials over the bank’s failure to provide the requested information. “Why is SBS hesitating? Why are higher officials, including the Managing Director, silent on this matter?” Bhutia asked.

The RTI request was filed against SBS due to concerns over financial irregularities. Bhutia cited a revelation made by Sikkim Civil Society (Sikkim Nagrik Samaj) on May 22, 2024, regarding a Rs 69 crore scam in SBS. Additionally, the audit report of March 31, 2024, uncovered irregularities in pension funds, further justifying the demand for transparency.

Bhutia also recalled that in 2015, the ruling Sikkim Krantikari Morcha (SKM) party, while in opposition, had written to then-Union Social Justice Minister Thawarchand Gehlot, alleging large-scale scams in SBS’s loan sector and demanding reforms. He questioned why the same party, now in power, had not taken action on these concerns.

Furthermore, Bhutia pointed to a statement made by SBS Chairman DB Gurung in a video dated November 7, 2021, where he stated that citizens could file RTIs to obtain the defaulters’ list and that the law would take its course. “If the chairman himself supported transparency back then, why are the higher officials silent today?” Bhutia asked.

“SBS is the bank of the people of Sikkim. It was given to us by the King himself. We have every right to demand transparency,” Bhutia asserted, calling on the current government to step forward and ensure accountability. He also noted that past RTI applicants received responses while the current request has been ignored, raising suspicions about selective disclosure.

As Sikkim approaches its 50th statehood anniversary on May 16, 2025, Bhutia said the lack of transparency in public institutions is disappointing. “We are not against any government. We simply seek transparency in a bank that belongs to the people. We appreciate the government’s efforts on the Inner Line Permit (ILP) and the recognition of 12 communities for Scheduled Tribe (ST) status, but financial transparency is equally important,” he said.

Bhutia affirmed that activists would continue filing RTIs across various departments to uphold the public’s right to information.

On December 28, 2024, the SIC had ordered SBS to disclose the list of loan defaulters, including their names, addresses, loan amounts, unpaid interest, loan approval dates, and last payment details. This decision followed an appeal by activists Sangay Gyatso Bhutia, Passang Sherpa, and Sonam Gyatso Sherpa after SBS refused to provide the information under the Right to Information (RTI) Act.

The ruling came amid concerns that SBS was selectively seizing properties of defaulters, raising allegations of unfair treatment. Critics argue that transparency in loan defaulters’ data would ensure accountability in SBS’s financial dealings. The SIC’s order was expected to increase scrutiny over how the bank manages loan recoveries, but the continued delay in compliance has now become a major point of contention.