The J&K bank has asked the deputy mayor of Srinagar to settle an outstanding loan of Rs 125 crore or face recovery proceedings and initiation of process to declare him a willful defaulter.
An independent candidate, Sheikh Imran was supported by the Congress and elected the deputy mayor of the Srinagar Municipal Corporation (SMC) on Tuesday.
In a notice issued on Oct 31, the Jammu and Kashmir (J&K) Bank asked Imran to pay forthwith the outstanding amount of Rs 125.07 crore.
"The said amount is hereby demanded from you to be paid forthwith, failing which the bank shall be constrained to take appropriate steps for recovery of the same including initiating the process of declaring you as a willful defaulter," the notice read.
It also mentioned that the bank had reached an agreement with Imran in July and agreed to accept Rs 78 crore from his group as full and final settlement of various accounts.
"However, you have failed and neglected to pay the said remaining amount within the prescribed time period," the bank said, while annulling the earlier agreement.