Jyoti Bikas Bank Invites Sealed Bids for Auction of Mortgaged Collateral Assets

14th October 2026, Kathmandu

Jyoti Bikas Bank Limited has issued a seven-day public notice inviting confidential sealed bids for the auction of movable and immovable assets pledged as collateral by defaulting borrowers.

Jyoti Bank Sealed Bids Invitation

Auction Framework, Bidding Directives, and Recovery Mandate

The development bank initiated the asset liquidation process in accordance with banking laws after borrowers failed to clear their loan liabilities despite repeated notices.

• Auction Notice Issuance: Published a seven-day public auction notice in the Karobar national daily newspaper on Ashwin 27, 2083 (October 13, 2026).
• Grounds for Auction: Executed under the Bank and Financial Institutions Act (BAFIA), 2017, due to non-repayment of principal, regular interest, penalty interest, and accrued charges by defaulting borrowers.
• Application Window and Submission: Eligible individuals, firms, and corporate institutions must collect and submit sealed bid forms at respective branch offices within seven days of notice publication.
• Holiday Provision: If the final submission deadline or bid-opening date coincides with a public holiday, bidding proceedings will automatically shift to the next immediate business day.
• Asset Condition Terms: Mortgaged assets will be auctioned strictly on an “as is, where is” basis, regardless of location or current physical state.
• Final Repayment Opportunity: Borrowers and collateral owners are given a final window to clear all outstanding liabilities and reclaim pledged assets before auction finalization.

Legal Recovery via Debt Recovery Tribunal

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If auction proceeds fall short of total outstanding dues, the bank will initiate legal action against borrowers and guarantors to attach other personal assets through the Debt Recovery Tribunal under the Debt Recovery Act, 2002, and BAFIA, 2017.

Non-Objection Clause

Borrowers and concerned parties cannot challenge the auction process or raise legal objections if collateral is sold below market valuation or acquired directly by the bank at a lower valuation.

For More: Jyoti Bank Sealed Bids Invitation