Lumbini Bank Auction Notice Issued for Loan Recovery

30th March 2026, Kathmandu

Lumbini Bikas Bank Limited has issued an urgent public notice to its listed debtors regarding mandatory loan repayment and the upcoming auction of collateral properties.

Lumbini Bank Auction Notice

This decisive step has been taken following repeated non-compliance by borrowers in settling their principal, interest, penal interest, and other administrative charges as per their signed loan agreements. Despite multiple prior verbal reminders and formal publications in the News 24 National Daily, several borrowers have failed to clear their dues, prompting the bank to exercise its legal rights under the Bank and Financial Institution Act (BAFIA), 2073.

The Lumbini Bank Auction Notice serves as a final administrative measure to recover stuck capital. The bank will conduct a transparent public auction of the pledged collateral properties according to its internal recovery policies. Interested individuals, professional real estate investors, and institutional bidders are invited to submit sealed bids to acquire these assets.

Borrower Details and Collateral Properties

The latest Lumbini Bank Auction Notice specifically identifies several high-value defaults across various branches. Key borrowers and their associated properties listed for auction include:

Sange Buddhist Handicraft: Owned by Sarita Tamang. The collateral includes land and constructed houses registered under Mohan Kaji Tamang in Bageshwari, Nuwakot.

Suba Shri Suppliers: Based in Bharatpur, Chitwan, and owned by Prem Bahadur Dallakoti. Assets include residential land and buildings located in Siswaar-9, Chitwan.

Raju Tamang (Dhikure Branch): Multiple land plots (345, 374, 376, 392) in Gerkhu-9, Nuwakot, featuring completed buildings.

Veer Bahadur Khadka: Prime properties located in Jorpati-3, Kathmandu, and Changunarayan-9, Bhaktapur.

New B & B Suppliers: Owned by Bhim Bahadur Gurung. This auction includes movable assets like TATA Tipper vehicles as well as land plots in Chitwan.

This notice explicitly calls on all primary debtors, secondary guarantors, and concerned third parties to settle their outstanding loans immediately if they wish to safeguard these assets from being sold to the highest bidder.

The Auction Process and Timeline

To participate in the bidding process defined by the Lumbini Bank Auction Notice, interested parties must follow a structured set of guidelines:

Bid Form Collection: Official forms are available at respective bank branches for a non-refundable fee of 500 NPR.

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Submission Deadline: All sealed bids must be submitted by the end of office hours on 6th Baishakh, 2083 (Sunday).

Bid Opening: The bids will be opened publicly on 7th Baishakh, 2083 (Monday) at 3:00 PM at the respective branch office.

Valuation Conditions: Properties may be sold at market value or a lower distressed valuation to ensure recovery. No disputes regarding the final bid price will be entertained once the process is finalized.

The bank reserves the ultimate right to accept or reject bids selectively. Even if the debtor or their legal representative is absent during the scheduled opening, the process will proceed to ensure timely recovery of public funds.

Legal and Financial Implications for Defaulters

Failure to comply with the instructions laid out in the Lumbini Bank Auction Notice carries heavy legal weight. Beyond the loss of physical property, the bank will initiate the following:

Blacklisting: Debtors will be formally recommended for inclusion in the Credit Information Bureau (CIB) blacklist, preventing them from accessing any future banking services in Nepal.

Further Litigation: If the auction proceeds do not fully cover the outstanding debt, the bank may pursue further legal action against personal assets or other business interests of the guarantors.

Transfer of Rights: The auctioned collateral will include all legal rights, titles, and interests associated with the properties, ensuring the buyer receives a clear and legally compliant ownership transfer.

How to Resolve Outstanding Dues

Lumbini Bikas Bank urges all listed debtors to act swiftly to clear their loans and avoid the permanent loss of their collateral. Taking immediate action can stop the auction process if the full outstanding amount, including penalties, is settled before the bid opening date.

For further details or to negotiate a final settlement, concerned parties should visit the nearest Lumbini Bikas Bank branch or contact the central office at Sunrise Bizpark, Dillibazar, Kathmandu. The recovery department can be reached at 01-4513232 or 01-4513526 for specific case inquiries.

Conclusion

The Lumbini Bank Auction Notice reinforces the commitment of the financial sector to protecting the interests of depositors while providing a transparent, legal framework for property recovery. For investors, this auction presents an opportunity to acquire real estate and vehicles through a legitimate government-regulated process. For debtors, it serves as a final warning to fulfill their financial responsibilities and protect their professional reputation within the Nepalese banking system.

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