Protesters lock down NMB bank branch in Jhalari over alleged irregular loan auction

Kanchanpur: The Gen-z Youth Struggle Committee has locked down the NMB Bank branch in Jhalari Bazaar, Kanchanpur, alleging irregularities in the auction of a mortgaged house.

The committee accused the bank of auctioning the house of Ajay BK of Shuklaphanta Municipality–10 in collusion with a real estate broker, leaving the family in distress. Prior to the lockdown, members of the Genji Youth held discussions with bank officials and public representatives at the Area Police Office regarding the auction of BK’s mortgaged property.

Ward Chairman of Shuklaphanta Municipality–10, Lal Bahadur Air, said the bank had obtained a recommendation for the house through deception and that a letter had been sent seeking cancellation of the recommendation.

However, Deepak Karki, head of the NMB Bank Jhalari Bazaar branch, maintained that the auction was carried out in accordance with established procedures. He urged the borrower to pursue a legal remedy rather than resorting to locking down the bank.

Genji Struggle Committee leader Sijan Bahadur Singh claimed the house was auctioned through collusion between bank employees and land developer Dhirendra Saund. He said the lockout and protest would continue until justice is delivered to the affected family.

Ajay BK had taken a home loan of Rs 29.50 lakhs on Kartik 20, 2075 BS, mortgaging a three-and-a-half-storey house built on land in Jhalari Bazaar, Shuklaphanta Municipality–10. The loan had a repayment period of 15 years. According to BK’s bank statement, he paid around Rs 1 million in principal and interest over five years, though the bank’s letter states that no installments have been paid so far.

While the mortgage deed mentions a loan amount of Rs 29.50 lakhs, another document refers to Rs 3.7 million. The loan approval proposal issued by the bank also cites a loan of Rs 29.50 lakhs. BK had mortgaged land plot number 616, registered in the name of his wife Gyanu Bishwakarma, along with the house constructed on it. The bank issued the loan by foreclosing the collateral.

The bank auctioned the house in 2080 BS, citing default on the Rs 29.50 lakh loan and referring to another loan of Rs 3.7 million taken from the Mahendranagar branch in 2075 BS.

After learning that the bank had issued a 15-day auction notice, BK alleged that the bank refused to halt the auction even after he approached it with Rs 3 lakhs in cash and a cheque of Rs 1 lakh. BK’s family has objected to the auction, alleging it was carried out in coordination with a land broker without allowing sufficient time for repayment.