Five banks sued for ‘not providing committed loans’
HETUADA, MAY 27 -
Bikas Kothari, proprietor of Everest Vinyl Industry, has sued five banks claiming that he had to bear huge loses as the consortium refused to provide loans as per the loan agreement.
Kothari on Sunday filed a complaint against the five banks—Global, Nabil, Himlayan, Bank of Kathmandu and Sunrise —in District Court Kathmandu, demanding a compensation of Rs 260 million from the banks. “The banks only provided first installment of working capital to establish the factory,” said Kothari. “I had to bear huge loss as they later refused to provide remaining amount as per the loan agreement.”
The consortium refused to provide committed amount after it suspected the possibility of over financing. Manager of one of the banks said they backed off from lending as Kothari was not interested in making his part of investment. “Lack of trust between the loanee and banks invited such situation,” said Ashoke Rana, CEO of Himalayan Bank.
According to Kothari, he was to receive Rs 426 million from Global, 80 million from Nabil, Rs 50 million from Himalayan, Rs 90 million from Bank of Kathmandu and and Rs 56.9 million from Sunrise as per the deal.
Kothari had been out of contact since April 13 after the banks published a 35-day public notice, asking him to repay loans. He appeared at the district court on the 35th day on Sunday.
Source: Kantipur
Bikas Kothari, proprietor of Everest Vinyl Industry, has sued five banks claiming that he had to bear huge loses as the consortium refused to provide loans as per the loan agreement.
Kothari on Sunday filed a complaint against the five banks—Global, Nabil, Himlayan, Bank of Kathmandu and Sunrise —in District Court Kathmandu, demanding a compensation of Rs 260 million from the banks. “The banks only provided first installment of working capital to establish the factory,” said Kothari. “I had to bear huge loss as they later refused to provide remaining amount as per the loan agreement.”
The consortium refused to provide committed amount after it suspected the possibility of over financing. Manager of one of the banks said they backed off from lending as Kothari was not interested in making his part of investment. “Lack of trust between the loanee and banks invited such situation,” said Ashoke Rana, CEO of Himalayan Bank.
According to Kothari, he was to receive Rs 426 million from Global, 80 million from Nabil, Rs 50 million from Himalayan, Rs 90 million from Bank of Kathmandu and and Rs 56.9 million from Sunrise as per the deal.
Kothari had been out of contact since April 13 after the banks published a 35-day public notice, asking him to repay loans. He appeared at the district court on the 35th day on Sunday.
Source: Kantipur
