District administration seals finance company after loan insurance claim denied to widow
PIONEER EDGE NEWS SERVICE | Dehradun
The Dehradun district administration sealed CSL Finance Limited in Hathibadkala after it allegedly failed to settle a loan insurance claim for a widow, despite clear documentation and repeated appeals. The company had allegedly refused to provide the no-dues certificate and withheld property documents even though the loan was insured and the premiums had been paid in full by the borrower before his death.
The officials informed that the action followed a complaint filed on July 11, 2025, by Priya, a widow and mother of four young daughters. Her husband, Vikas Kumar, had reportedly taken a home loan of Rs 6.50 lakh from CSL Finance Limited and had also purchased loan insurance as per bank requirements. Kumar passed away on July 12, 2024, under sudden circumstances. Since then, Priya had been approaching the bank and the insurance company for the claim settlement but received no resolution. Instead, she alleged that the company’s agents repeatedly harassed her and took possession of her property papers. Despite the insurance coverage, the company neither processed the insurance claim nor waived the loan liability.
After approaching the Dehradun district magistrate Savin Bansal, the administration issued a recovery certificate (RC) of Rs 6.50 lakh against the company’s management. The company was given a week to resolve the matter. The officials informed that after the deadline passed without compliance, the administration sealed the company’s building at Hathibadkala and began proceedings for auction. They stated that the company and the associated insurance company, Tata AIA, came under the administration’s radar for allegedly failing to protect the rights of a legal claimant and causing distress to a financially struggling family.
The officials stated that the administration will continue such measures against any entity that ignores official directives or causes hardship to common citizens.
