Friday, November 09, 2007

Credit Bureau Can Blacklist Loan Defaulters: SC

The Supreme Court stated on Thursday that the Credit Information Bureau (CIB) has the authority to black-list any businessman or group if the latter does not pay back the loan taken from any financial institution.A three-member full bench of justices Min Bahadur Rayamajhi, Bala Ram KC and Kalyan Shrestha issued the verdict.Quashing a Public Interest Litigation (PIL) filed by advocate Ishwor Prasad Adhikary, the bench upheld the CIB's authority.The petitioner had sought the court order to the authorities, including Nepal Rastra Bank, the government and the Ministry of Finance not to give the CIB the authority to blacklist defaulters.The petitioner had claimed that the Nepal Rastra Bank Act 2058 BS does not permit anyone to black-list anyone or any group.

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