According to available information, the bank’s Asset Recovery Branch (ARB) in Hyderabad, through Recovery Officer Yatish Bhatt and other staff members, allegedly launched coercive recovery proceedings against a borrower, Prem Kumar Bommak. In response, Bommak has filed a detailed complaint with Union Finance Minister Nirmala Sitharaman, seeking intervention in the matter.

The complaint alleges that certain bank officials have been misusing provisions of the SARFAESI Act and the mechanisms of the Debt Recovery Tribunal (DRT) to exert undue pressure on legitimate borrowers and punish them forcibly.

Meanwhile, an investigative report published by The Pioneer has highlighted significant irregularities in loans granted to several major corporate entities. The report points to large-scale defaults involving companies and individuals such as Era Group, Lanco Group, Nirav Modi, Mehul Choksi, Essar Group, Bhushan Power & Steel, Supertech Limited, Punj Lloyd, and firms linked to Anil Ambani. These cases together account for loan defaults estimated at nearly ₹9.96 lakh crore.

With limited success in recovering such large corporate debts, allegations have surfaced that some banking officials are attempting to offset losses by pursuing aggressive recovery actions against smaller, individual borrowers.

Over the past few years, multiple media reports have also pointed to instances of financial irregularities, fraud, and misconduct involving certain officials of Union Bank of India. These developments have raised broader concerns about transparency, accountability, and internal oversight within the banking system.

Experts say the situation should serve as a wake-up call for borrowers, urging them to closely monitor their loan accounts, banking transactions, and legal rights to safeguard themselves against any unfair or unlawful practices.

Amid growing public concern, citizens and financial observers are now calling for an independent and transparent inquiry into the matter to ensure accountability and restore fairness in the loan recovery process.