Agricultural Development Bank Limited Issues Second Public Auction Notice For Mortgaged Assets

18th May 2026, Kathmandu

Agricultural Development Bank Limited has officially released a second public notification regarding the forced liquidation of mortgaged movable and immovable properties through a competitive sealed bid auction.

ADBL Property Auction Notice

The financial institution resorted to this legal recovery mechanism after the concerned borrowers repeatedly ignored both oral reminders and official written requests to settle their outstanding liabilities. The formal notice follows a series of previous regulatory actions, including a standard 21 day repayment demand, a 35 day public notice issued on 2082/03/01, and a subsequent 15 day auction warning published on 2082/12/27, all of which failed to motivate the borrowers to clear their mounting banking dues.

Final Fifteen-Day Window Granted to Debtors and Collateral Providers

Through this fresh public announcement published on May 18, 2026, corresponding to 2083/02/04 on the traditional calendar, the state owned commercial bank has extended a final 15 day grace period to the primary loan customers, financial guarantors, and third party collateral providers. The bank demands the immediate settlement of all accrued principal amounts, accumulating interest rates, administrative penalties, and associated recovery fees. If the total outstanding debt remains unpaid at the expiration of this specific timeframe, the institution will move forward with the public asset sale in compliance with the Bank and Financial Institutions Act, 2073 and internal loan recovery guidelines.

Detailed Account Profiles and Borrower Identification Metrics

The distressed credit account involves a specialized housing finance product, listed officially under the home loan division of the bank. The primary borrower and registered owner of the mortgaged real estate asset is identified as Jagrit Pahadi, the son of Binod Pahadi. To ensure complete legal coverage during the upcoming debt recovery litigation, the bank has also named the official loan guarantors associated with the account. The guarantor roster includes Ram Bahadur Pahadi, Binod Pahadi, and Mamata Darnal Pahadi, the latter residing in the Butwal-15 region, with their official citizenship certificates issued by the District Administration Offices of Rupandehi and Palpa.

Geographic Specifications and Land Registry Details of the Kathmandu Collateral

The immovable property slated for public auction holds a highly valuable geographic position within the capital city, making it a lucrative option for real estate investors and developers. The land parcels and attached structural buildings are located within Ward Number 16 of the Kathmandu District. According to the official land revenue records captured during the initial mortgage registration phase, the target assets are registered under plot number 143 and plot number 159. The sale will include all physical structures, boundary walls, and water access rights naturally attached to these specific land plots.

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Operational Timeline and Branch Venues for the Bidding Process

The bank recovery department has established a precise operational timeline to manage the receipt and opening of the sealed bid documents. The official auction sale date has been scheduled for Jestha 19, 2083, which aligns approximately with June 1, 2026. The administrative paperwork and account histories are being overseen by the prominent New Road Branch Office in Kathmandu. However, for logistics and security reasons, the physical auction venue and bid submission center will be hosted at the Ratnapark Branch Office in Kathmandu, acting under authorizations linked to the District Administration Office of Rupandehi.

Comprehensive Auction Terms Conditions and Security Deposit Regulations

To participate in this distressed asset liquidation, prospective buyers must comply with a strict set of financial terms and conditions laid down by the central loan recovery board:

• The bidding floor will officially open at the base valuation price determined by the independent engineers of the bank.
• The auction process will move forward seamlessly even if fewer than three independent bidders drop their envelopes into the collection box.
• The highest matching bidder must deposit at least 10 percent of their final bid value as earnest money on the exact same day of the auction.
• The winning participant is required to clear the remaining 90 percent balance within 7 days of receiving the formal auction approval letter.
• If the successful bidder fails to pay the balance within the week, their initial 10 percent deposit will be permanently forfeited.
• If a public holiday or unexpected operational delay occurs on the scheduled date, the auction will automatically take place on the next working day.

The bank also notes that no interest will be paid on earnest money deposits during the evaluation period, and the entire process will be cancelled immediately if the original borrower manages to clear all outstanding debts before the final papers are signed.

Tax Liabilities and Ultimate Discretionary Power of the Bank Board

The successful bidder will be required to handle all financial and administrative tasks necessary to complete the property deed transfer. Agricultural Development Bank Limited has explicitly stated that all applicable state taxes, land registration fees, municipal revenue charges, and secondary government costs related to the ownership transfer must be borne entirely by the buyer. Furthermore, the bank Head Office Loan Recovery and Collection Department maintains absolute discretionary power over the entire cycle, reserving the full right to accept or reject the highest financial bid without being legally obligated to provide reasons to the participants.

For More: ADBL Property Auction Notice