Saturday, May 05, 2007

Supreme Court orders Amatya group to pay back bank loans
The Supreme Court has directed Pyush Bahadur Amatya and his brother Daman Bahadur Amatya of the Amatya group to pay back over three billion rupees to banks and financial institutions from where they had taken loans about 12 years ago.
A division bench of Justices Bala Ram KC and Tahir Ali Ansari issued the order settling a four-year-old dispute between the financial bodies and the business group.
The Amatya group is the biggest wilful defaulter in the country and was under the scanner of the Commission for Investigation of Abuse of Authority (CIAA) for the past few years.
The group had taken over one billion rupees from the Rastriya Banijya Bank, Nepal Bank Limited, Employees’ Provident Fund, Nepal Industrial Development Corporation (NIDC) and the Agricultural Bank.
The loans had been taken to operate Hotel Fulbari Resort in Pokhara in 1996. However, the group has not paid a single installment till date and the amount now payable stands at three billion rupees.
The Rastriya Banijya Bank had recommended the Credit Information Bureau (CIB) to blacklist the group after several notices to clear the loan in 2004 were ignored by the group.
However, the group had moved the apex court, challenging the CIB’s decision to blacklist it. Upholding the CIB’s decision to blacklist the group, the bench observed that the CIB was right in doing so under the Nepal Rastra Bank Act.

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