Machhapuchchhre Bank Issues Collateral Auction Notice

8th June 2026, Kathmandu

Machhapuchchhre Bank Limited Parsyang Branch has officially issued a seven day sealed bid auction notice for the sale of mortgaged movable and immovable properties.

Machhapuchchhre Bank Collateral Auction

The primary recovery action was launched after the commercial borrower failed to clear accumulated debt obligations despite repeated oral and written reminders. The bank explained that this legal asset liquidation follows a prior 35-day public warning notice published in a national daily newspaper, which went unaddressed by the business owners.

Clear Legal Basis and Regulatory Framework Governing the Liquidation Process

The specialized financial retrieval campaign has been executed under the strict authority provided by the Banking and Financial Institutions Act 2073.

This state legislation empowers licensed commercial banks to independently liquidate pledged collateral assets when an account enters a state of persistent default.

The central regulatory objectives behind these mandatory legal recovery steps include:

• Recovering trapped institutional funds to maintain healthy cash reserves
• Protecting the integrity of commercial credit systems against prolonged non-payment
• Ensuring an open process through a sealed bid auction format
• Safeguarding the economic interests of retail bank depositors nationwide

Interested individual investors and corporate entities are formally invited to submit their sealed bids within seven days from the publication date of the notice.

By utilizing a structured bidding environment, the recovery department guarantees that the underlying physical assets are evaluated and sold at fair market values in line with state guidelines.

Background Details of the Defaulting Borrower and Private Commercial Firm

The commercial credit facility was originally extended to a local jewelry enterprise operating inside the western tourism hub of the country.

According to the official recovery files, the detailed legal profile of the defaulting commercial entity consists of these specific records:

• Official Business Name: Gorkhali Sun Chadi Pasal
• Enterprise Registration Type: Private Firm registered under the Private Firm Registration Act 2014
• State Registration Number: 3009/066/067
• Permanent Account Number (PAN): 302485112
• Registered Business Address: Ward No. 8, Pokhara Metropolitan City, Kaski
• Listed Company Proprietor: Amar Kumar B.K.

The commercial enterprise fell into default after failing to pay routine installments, accumulated interests, and associated penalty charges as agreed upon inside the original credit contract.

Consequently, the bank has exercised its contractual rights to seize and auction the personal and business assets pledged during the initial loan verification process.

Detailed Inventory of Mortgaged Immovable and Movable Corporate Assets

The public auction includes a valuable mix of prime residential or commercial land parcels along with the underlying business inventory of the retail firm.

The physical properties are distributed across two separate districts, providing a diverse selection for potential real estate buyers.

The specific asset lots available for public bidding include:

Land Parcels in Kaski District: Located within Pokhara Metropolitan City Ward No. 17 and 8. The property is registered under the name of Sunita B.K. (wife of Amar Kumar B.K.) at the Land Revenue Office in Kaski. It includes Kitta No. 5781 (measuring 0-5-2-3 ropani), Kitta No. 5784 (measuring 0-1-0-0 ropani), and Kitta No. 5787 (measuring 0-4-2-3 ropani), including all physical buildings and structural improvements built on the land.

Land Parcels in Tanahun District: Registered under the personal name of proprietor Amar Kumar B.K., located at Sabasaya Abu Ward No. 2. This lot consists of Kitta No. 761 (measuring 0-5-0-0 ropani) and Kitta No. 1091 (measuring 15-5-1-0 ropani), including all attached permanent structures.

Movable and Hypothecated Assets: The entire remaining stock and commercial inventory of Gorkhali Sun Chadi Pasal held under the original Hypothecation Agreement, alongside all business receivables and movable equipment covered by the Assignment Agreement.

Additionally, both Amar Kumar B.K. (holding Citizenship No. 2230 issued by District Police Office Gulmi) and Sunita B.K. (holding Citizenship No. 461001/604) are involved as personal guarantors.

Under national financial regulations, these individuals remain fully responsible for covering the remaining balance if the final auction proceeds do not completely cover the outstanding debt.

Essential Bidding Terms, Financial Deposits, and Administrative Guidelines

To participate in this recovery auction, prospective buyers must follow a specific set of administrative rules established by the credit risk committee.

These rules help screen out casual inquiries and ensure that only serious investors participate in the asset liquidation process.

The essential terms and financial conditions governing the sealed bid submission include:

• Official bid forms must be purchased from the bank counter for a non-refundable fee of NPR 1000
• All completed sealed bids must be submitted within the strict seven day window from publication
• Bidders must clearly write out their financial offers in both words and numbers to avoid clerical errors
• A mandatory 10% bid security deposit must be attached via an approved bank draft or good-for-payment check
• The highest selected bidder is required to pay the remaining 90% balance within seven days of notification
• All assets are sold strictly on an as-is-where-is basis with no post-sale modifications provided by the bank
• Any outstanding local property taxes, registration fees, and utility arrears must be paid by the buyer

The recovery board explicitly notes that late or incomplete bid submissions will face immediate disqualification without evaluation.

Furthermore, the bank management retains the absolute corporate right to accept or reject any individual bid or cancel the entire asset liquidation process without providing prior explanations to participants.

Official Submission Schedule, Evaluation Timelines, and Legal Warnings

The administrative processing of the collateral bids will take place at the regional branch hub according to a strict timeline.

Investors must deliver their documents to the specified office location before the closing hour to be considered for evaluation.

The official operational schedule for the property liquidation contains these milestones:

• Final Bid Submission Deadline: 2080/04/23 (Tuesday, until the close of regular office hours)
• Sealed Bid Opening Session: 2080/04/24 (Wednesday, starting promptly at 3:30 PM)
• Designated Venue: Machhapuchchhre Bank Limited, Parsyang Branch Office

The public recovery notice includes an important legal warning for the defaulting parties involved in the case.

If the final auction revenue falls short of covering the complete outstanding loan balance, the bank will launch further legal actions to seize unpledged personal assets.

Additionally, the defaulting business owners and personal guarantors face long-term blacklisting by the Credit Information Bureau of Nepal. This restriction will block them from accessing future credit lines or opening new commercial accounts at any licensed financial institution across the country.

For More: Machhapuchchhre Bank Collateral Auction