The Kathmandu District Court has ordered to stop the process of buying 41 percent shares of Nepal Bangladesh Bank owned by IFIC Bank for the time being.
Nepal Bangladesh Bank Limited is a joint venture commercial bank between IFIC Bank limited and Nepali nationals. The commercial bank started its operation with effect from 06 June 1994 in Nepal with 50% equity from IFIC Bank Limited. According to IFIC Bank's official website, IFIC Bank, a banking company incorporated in the People's Republic of Bangladesh currently holds a 40.91% stake in Nepal Bangladesh Bank. The bank had commenced a process of negotiation to sell the entire stake of Nepal Bangladesh Bank.
In the case filed by Motilal Dugar, a businessman who is also the chairman of Sunrise Bank, the court has ordered not to sell the shares for the time being. The court has also demanded that the opposition Nepal Bangladesh Bank submit a written reply within seven days.
In the order issued by the district court, it is apparent that Motilal Dugar had already signed an agreement to purchase 3,68,27,426 shares of NBB at Rs. 157 per share. According to the court order, the agreement was acknowledged and accepted by the opposition Nepal Bangladesh Bank on March 31, 2021.
However, the bank had then left the Dugar group in the dark for the last couple of months. It was later brought to the Dugar group's attention that the Chaudhary Group headed by Binod Chaudhary was in the process to buy the shares of NBB owned by IFIC. Chaudhary Group has a majority stake in Nabil Bank. Apparently, an agreement was reached to buy shares in the name of his wife Sarika. This had then led Dugar to file an application against the ongoing procedure.