Machhapuchchhre Bank Initiates Public Auction for Mortgaged Properties Following Credit Defaults

11th June 2026, Kathmandu

Machhapuchchhre Bank Limited has officially issued a seven day public notification announcing the auction sale of multiple movable and immovable collateral properties.

Machhapuchchhre Bank Auctions Pledged

The public liquidation process is being carried out under the clear legal provisions of the Bank and Financial Institutions Act 2073. The action comes after various borrowers failed to clear their outstanding loan principals, accumulated interests, and penalties despite receiving individual warning letters and extended grace period notices.

Tracking the Roots of the Financial Default and Legal Enforcement Actions

The upcoming property auction is a direct result of ongoing loan agreement violations across multiple regional branch operations.

The recovery department moved forward with the asset liquidation only after standard loan restructuring options, verbal reminders, and formal 35 day repayment notices were completely ignored by the borrowers.

The organizational tracking data behind these default cases includes:

• Enforcing Financial Institution: Machhapuchchhre Bank Limited, acting through its specialized credit recovery division.
• Primary Regional Branch Offices: The credit lines were originally issued and monitored by the Bardibas branch in Mahottari and the Chandragadhi branch in Jhapa.
• Legal Basis for Asset Disposal: The liquidation strictly follows the Bank and Financial Institutions Act 2073 to ensure a clear title transfer to successful bidders.

The asset management committee notes that the proceeds from this competitive bidding process will be applied directly against the outstanding debts of the borrowers.

Any remaining debt balance after the auction will still be pursued through legal channels, including asset freezes on personal guarantors.

Breaking Down the Mortgaged Real Estate and Business Inventories by Branch

The upcoming public liquidation features a diverse mix of assets, ranging from rural agricultural holdings and city houses to commercial business inventory and accounts receivable.

This variety provides options for both local real estate developers and commercial liquidators looking for bulk business assets.

The exact breakdown of the properties and assets available in this auction includes:

Bardibas Branch: Sajina Collection and Dev Kumar Adhikari Portfolio

The bank will liquidate a plot of land and a residential building registered under the name of Indra Prasad Adhikari, situated in Bahadurganj, Mahottari.

The auction package also contains additional land parcels, residential structures, and the entire current business stock, movable machinery, and receivables assigned to the bank under hypothecation agreements by Sajina Collection.

Bardibas Branch: Umang General Stores Portfolio

This package includes land plots and associated buildings registered under the name of Anju Kumari Sah, located in Bahadurganj, Mahottari.

The commercial portion of the sale includes the complete retail business inventory, movable shop equipment, and outstanding credit receivables belonging to Umang General Stores.

Chandragadhi Branch: Harit Multi Purpose Agro Farm Portfolio

The bank is offering residential land plots and built structures registered under the name of Purna Nyaupane, located within Bhadrapur Municipality, Jhapa.

The package also covers all associated machinery and farm collateral pledged against the credit lines of Harit Multi Purpose Agro Farm.

Essential Auction Guidelines Security Deposits and Payment Timelines

To maintain a clean and standardized bidding process, the bank has set out strict application rules for all interested buyers.

These guidelines help verify the financial capability of participants, ensuring that only serious institutional buyers and private investors enter the bidding pool.

The strict bidding terms and operational rules established for this auction include:

• Application Documentation Fee: Official application forms must be purchased from the respective branch offices for a non-refundable fee of NPR 1,000 per copy.
• Mandatory Earnest Money Security Deposit: Every sealed bid must include a certified bank voucher or cash deposit equal to exactly 10% of the total offered bid price.
• Final Balance Payment Framework: The winning bidder must deposit the remaining 90% of the purchase price within seven days of receiving formal bank approval.
• Right of Final Administrative Rejection: The bank maintains full authority to accept or reject any bid, negotiate pricing terms, cancel the auction at any point, or take direct ownership of the properties if incoming bids are too low.

The credit evaluation team reminds all bidders to inspect the physical condition of the land plots and business inventories before submitting their paperwork.

All assets are sold strictly on an as-is-where-is basis, meaning the buyer assumes full responsibility for any future boundary clearings, property taxes, or local registration costs.

Vital Submission Deadlines Processing Timelines and Bidding Locations

The bank has set tight processing timelines to ensure a swift asset liquidation and minimize financial carrying costs.

Interested buyers must submit their physical, sealed envelopes directly to the corresponding branch offices where the loans were originally issued.

The definitive timeline dates, deadline times, and review locations include:

• Final Bid Submission Cutoff Date: Applications must be delivered to the respective branch offices within regular working hours by Asar 3 2083, which corresponds to June 17, 2026.
• Official Bid Opening and Review Phase: The formal unsealing of the envelopes will take place on Asar 4 2083, corresponding to June 18 2026, at exactly 3:30 PM.
• Designated Bidding and Review Venues: The physical premises of Machhapuchchhre Bank’s Bardibas and Chandragadhi branch offices.

If multiple buyers submit identical top offers for a property, the bank will open immediate negotiations or hold a secondary price run to decide the winner.

This public auction provides a secure and clear channel for real estate investors to buy titled property safely under direct banking supervision.

For More: Machhapuchchhre Bank Auctions Pledged