Nepal dev bank liquidation: NA seeks stay order on land auction
KATHMANDU, JUN 23 -
The Nepal Army (NA) has filed a case against the liquidator of Nepal Development Bank (NDB) seeking a stay order preventing the auction of its land in Chitwan. The NA has gone to the Patan Appellate Court claiming that the land auction process was non-transparent.
The Patan Appellate Court on Tuesday ordered the liquidator to hold the auction process and be present at the court on Sunday for a discussion.
The NA’s Army Welfare Fund is yet to receive its deposit worth Rs 176.3 million from NDB that is under the liquidation process. The NA had filed a writ on Monday.
“As for now, the court has told the liquidator not to move ahead with the auction process,” said court source.” Whether a stay order is required or not will be decided after the liquidator’s response.”
NDB’s liquidator Narayan Bajaj had issued an auction notice on June 7 for 10 bighas of land of Holyland School in Chitwan and 10 bighas of land of Nepal Sahakari. The 15-day notice stated that the land would be sold to the highest bidder.
The NA in its writ has alleged that liquidator Bajaj issued the auction notice without mentioning the minimum value of the land.
The writ said that the liquidator had fixed the value of the land much below the market price and kept it a secret. “The liquidator has valued the land as Rs 70,000 per kattha,” said the writ. “However, the land’s minimum value is around Rs 300,000.”
Liquidator Bajaj said that he had no idea about the writ or the decision of the court. Regarding the charge about under-valuation of the land, he said, “The price of land keeps changing as per particular situations even in the same location.”
The NA’s Directorate of Public Relations said that it would not comment on the issue as it was sub judice. Nepal Rastra Bank had decided to liquidate troubled NDB in 2009. The Nepal Army and the Employees’ Provident Fund are the two biggest institutional depositors in NDB, and they are yet to get back their money.
Source: Kantipur
The Nepal Army (NA) has filed a case against the liquidator of Nepal Development Bank (NDB) seeking a stay order preventing the auction of its land in Chitwan. The NA has gone to the Patan Appellate Court claiming that the land auction process was non-transparent.
The Patan Appellate Court on Tuesday ordered the liquidator to hold the auction process and be present at the court on Sunday for a discussion.
The NA’s Army Welfare Fund is yet to receive its deposit worth Rs 176.3 million from NDB that is under the liquidation process. The NA had filed a writ on Monday.
“As for now, the court has told the liquidator not to move ahead with the auction process,” said court source.” Whether a stay order is required or not will be decided after the liquidator’s response.”
NDB’s liquidator Narayan Bajaj had issued an auction notice on June 7 for 10 bighas of land of Holyland School in Chitwan and 10 bighas of land of Nepal Sahakari. The 15-day notice stated that the land would be sold to the highest bidder.
The NA in its writ has alleged that liquidator Bajaj issued the auction notice without mentioning the minimum value of the land.
The writ said that the liquidator had fixed the value of the land much below the market price and kept it a secret. “The liquidator has valued the land as Rs 70,000 per kattha,” said the writ. “However, the land’s minimum value is around Rs 300,000.”
Liquidator Bajaj said that he had no idea about the writ or the decision of the court. Regarding the charge about under-valuation of the land, he said, “The price of land keeps changing as per particular situations even in the same location.”
The NA’s Directorate of Public Relations said that it would not comment on the issue as it was sub judice. Nepal Rastra Bank had decided to liquidate troubled NDB in 2009. The Nepal Army and the Employees’ Provident Fund are the two biggest institutional depositors in NDB, and they are yet to get back their money.
Source: Kantipur
