SBI Customer Says Banking Hurdles, Unresolved Account Issue and Insurance Address Dispute Deepened Financial Pressure
BHUBANESWAR: A Bhubaneswar-based entrepreneur has approached the Reserve Bank of India’s Ombudsman mechanism with a detailed complaint against the State Bank of India’s Chandaka Industrial Complex Branch, alleging that unresolved banking and project-finance issues have left him facing prolonged financial and business hardship after obtaining a PMEGP loan for a fly ash brick manufacturing unit.
Sanatan Dalabehera, proprietor of M/s Tara Fly Ash Brick Manufacturing Unit, has raised questions over the handling of his project finance, an allegedly unexplained account-related issue, subsequent disbursement, project implementation delays, continuing repayment obligations and an insurance-address discrepancy that later became relevant to claims following storm damage and theft.
₹44.90-Lakh PMEGP Finance at the Centre of Dispute
According to the complaint, SBI sanctioned total finance of ₹44.90 lakh for the PMEGP project on June 23, 2025. The sanction comprised a ₹36.90-lakh term loan and an ₹8-lakh FBWC limit.
Dalabehera states that he contributed the required promoter margin and proceeded with the project on the basis of the bank’s sanction. His stated objective was to establish a fly ash brick manufacturing unit, generate business income and use that income to meet his repayment obligations.
However, he alleges that difficulties during project implementation and financial processing prevented the unit from becoming normally operational within the expected period.
‘Account Problem’ Without Clear Explanation, Says Borrower
One of the central issues in the complaint concerns what the borrower describes as an unexplained “problem” in his SBI account during the subsequent stage of project disbursement.
Dalabehera says bank officials informed him that there was a problem but, despite repeated approaches, he did not receive a satisfactory written explanation regarding its nature, cause, timing or impact on the project.
He has therefore asked the RBI Ombudsman to obtain SBI’s records and clarify what the issue was, whether it affected further disbursement and what action was taken by the bank.
The complaint also refers to a machinery-disbursement entry dated August 14, 2026, while requesting verification of the date from SBI’s account and official records.
A separate additional term loan of ₹4.90 lakh, bearing TL No. 44869921448 and dated January 22, 2026, has also been cited in the complaint, with the borrower seeking clarification regarding its processing and connection with the original project.
Insurance Address Discrepancy Under Scrutiny
The insurance documentation has emerged as another major issue in the complaint.
Dalabehera states that the actual manufacturing premises are located at Plot No. 3(P), IDCO Industrial Estate, Jagannathpur, Gohal, Balianta, Bhubaneswar.
He says the insurance schedule, however, carried a different address — “At/PO Balianta, Talagarh, BBSR, Khordha, Odisha – 752101.”
The borrower has asked for examination of SBI’s role in recording and communicating the project address for insurance purposes. Among the questions raised are whether the correct manufacturing address was available in SBI’s project records, who provided the address for insurance and whether the discrepancy was brought to his notice or corrected before the reported losses.
Storm Damage, Theft Add to Business Loss Claims
The complaint also refers to storm-related damage allegedly suffered at the manufacturing premises on June 8, 2026. The borrower has estimated the loss at around ₹2 lakh.
A separate theft incident was reported on August 29, 2026, after an office-room lock at the premises was allegedly broken. The complaint lists electrical materials, wires, a water pump or motor, fans, lighting equipment, a gas cylinder and other project-related materials among the items allegedly stolen.
The borrower has estimated the theft-related loss at around ₹3 lakh and cited Police Case No. 382/26 registered at Pahala Police Station under Section 305(a) of the Bharatiya Nyaya Sanhita.
Theft Insurance Claim Declined
The complaint cites theft insurance Claim No. 2027-1713299 under Policy/Reference No. 202601008058000-00.
According to Dalabehera, the insurer declined the claim through a letter dated September 15, 2026, with the difference between the address appearing in the policy schedule and the actual location of the reported loss forming part of the issue.
The borrower has clarified that his complaint before the RBI is not limited to seeking settlement of the insurance claim. He wants the bank’s role in the documentation, communication and insurance arrangement connected with the SBI-financed project to be examined.
‘I Am Not Seeking to Avoid Repayment’
Dalabehera has specifically stated that he is not seeking to escape his legitimate loan liability.
According to his complaint, the loan was taken for establishing a genuine manufacturing business, with the intention of generating income and repaying SBI. He says he has continued making efforts to meet his repayment obligations despite the project not generating the expected cash flow.
He has requested consideration of any permissible restructuring, rescheduling or other banking relief based on the circumstances of the project.
₹20-Lakh Compensation Claim
The entrepreneur has sought ₹20 lakh as compensation for the consequential financial and business losses claimed by him. He has also requested consideration of applicable compensation for time, expenses and mental anguish, subject to the jurisdiction and applicable provisions of the RBI Ombudsman framework.
The complaint seeks a point-wise written response from SBI on the project-finance process, the alleged account issue, disbursement difficulties, repayment burden, insurance-address discrepancy and grievance-handling process.
Dalabehera has also stated that he is ready to provide additional supporting documents, original records and any clarification required during examination.
The matter now turns on the records submitted by the complainant, SBI’s response and the findings of the competent grievance-redress mechanism.
Global Times News | INDIA ; GTNS
SEPTEMBER 24, 2026