Debt mounts, Kangra Coop Bank seizes Lahaul Potato Society’s hotel

Kangra Central Cooperative Bank (KCCB) has seized Chandramukhi Hotel of the the Lahaul Potato Producers Society (LPS) due to its mounting debt that has reached Rs 9 crore. The seizure poses a serious threat not only to the society, which has around 2,400 members, but also to the local community that relies on the hotel for essential services.

The financial trouble of the Lahaul Potato Producers Society began when it took a loan of Rs 6.25 crore for the construction of the hotel. Over the years, mismanagement and inability to meet repayment deadlines caused the debt to mount, with monthly liabilities, including interest, now totalling around Rs 1.25 crore. Reports say that the bank has been in the process of seizing the property for some time, having issued multiple notices regarding the outstanding payments.

Sudarshan Jaspa, former president of the society, expresses deep concern over the seizure, noting that the hotel is vital for the region, which is also operating as a private hospital. “This will not only impact our association but also the local community that depends on the healthcare services provided here,” he adds. Jaspa says that despite attempts to engage both previous and current government administrations for assistance, no support is forthcoming, leaving the society to grapple with its worsening financial situation itself.

The situation for the LPS has deteriorated significantly over the years, particularly since 2012, according to Jaspa. During his tenure, he had sought a dialogue with state government officials to find a solution but in vain. The hotel, which previously generated an annual income of Rs 45 lakh, has become a casualty of financial mismanagement and rising debt.

Rajni Sood, Assistant General Manager of the KCCB, Kullu, says that the bank management has seized the property due to the LPS’s inability to settle its liabilities. This action raises urgent questions about the future of both hospitality and healthcare services in Lahaul, leaving residents anxious about their access to necessary medical care.

Financial mismanagement

• The situation for the Lahaul Potato Producers Society has deteriorated significantly over the years, particularly since 2012
• Sudarshan Jaspa, former president of the society, during his tenure had sought a dialogue with state officials to find a solution, but in vain
• The hotel, which generated an annual income of ~45 lakh, has become a casualty of financial mismanagement and rising debt