Shangri-la Development Bank Issues Collateral Auction Notice for Defaulted Loans

9th June 2026, Kathmandu

Shangri-la Development Bank Limited has officially issued a fifteen day public notice inviting confidential sealed bids for the auction of mortgaged movable and immovable assets.

Shangri-la Bank Collateral Auction

The recovery proceedings were initiated after the underlying borrowers failed to clear outstanding principal balances, accumulated interest, and associated penalty fees despite repeated verbal and written reminders. The bank is exercising its legal authority under national banking statutes to realize the value of the pledged securities through a competitive bidding framework.

Detailed Profile of First Defaulting Entity: M.B. Gold Store

The first commercial credit facility facing asset liquidation was extended to a retail enterprise operating within the Mid-Western region of the country.

According to the official recovery files, the detailed legal profile of the defaulting firm and its backing entities consists of these specific records:

• Official Business Name: M.B. Gold Store
• Registration Authority: Department of Commerce, Surkhet
• Primary Business Location: Birendranagar Municipality-08, Surkhet
• Listed Business Proprietor: Bharat Prasad Acharya
• Permanent Address of Proprietor: Aathbiskot Municipality-06, Dailekh

To secure the commercial loan, a large group of individuals stepped forward as personal guarantors and collateral providers.

The listed guarantors include Bishnu Prasad Acharya, Bhadra Kumari Jaisi, Ramesh Prasad Acharya, Swabita Acharya, and Hira Kumari Karki. Under standard credit agreements, each of these individuals shares joint legal responsibility for the outstanding debt balance.

Immovable Property Inventory for M.B. Gold Store in Dailekh District

The collateral asset attached to the first loan consists of a substantial land package containing permanent structural developments.

The property holds significant value due to its overall size and positioning within the regional real estate market.

The specific asset details available for public bidding include:

• Registration Authority: Land Revenue Office, Dailekh District
• Identified Plot Number: Kitta Number 68
• Total Surface Area: Approximately 2250 square meters
• Structural Additions: Includes all buildings, permanent fixtures, and attachments constructed on the land

The public auction will cover the entire mortgaged land parcel along with all associated structural improvements and legal usage rights, meaning the buyer acquires the asset in its entirety.

Detailed Profile of Second Defaulting Entity: Nishan Electronics

The second recovery action bundled into this public notice targets a separate retail business that has defaulted on its commercial credit lines.

The corporate board has consolidated these cases to optimize the administrative handling of regional asset liquidations.

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The legal information tracking this second defaulted account features:

• Official Business Name: Nishan Electronics
• Registration Authority: Cottage and Small Industries Office, Surkhet
• Primary Business Address: Birendranagar Municipality-08, Surkhet
• Listed Company Proprietor: Tek Bahadur Bhandari
• Address of Proprietor: Lekbeshi Municipality, Dailekh
• Additional Account Guarantor: Lalita Kumari Bhandari

The underlying security pledged against the Nishan Electronics loan facility is similarly registered at the Land Revenue Office in Dailekh.

The asset package contains specific land segments and attached structures that were formalised as collateral during the initial credit underwriting phase.

Essential Bidding Terms, Security Deposits, and Participant Guidelines

To maintain an orderly and legally sound auction environment, the risk management division has enforced strict procedural parameters.

These explicit rules filter out casual inquiries and ensure that all incoming bids are legally binding from the moment of submission.

The essential financial and administrative conditions governing the sealed bid process include:

• Official bid application forms must be acquired from the bank counter for a non-refundable fee of NPR 500
• Bidders must attach an earnest money deposit equivalent to 10% of their total quoted financial offer
• The 10% security deposit must be submitted via a Manager Check, Good for Payment Check, or cash deposit voucher
• The bid form must explicitly declare the target property and the final offered price in both words and numbers
• All properties are sold strictly on an as-is-where-is basis with no post-sale alterations provided by the institution
• The winning bidder takes full responsibility for property taxes, registration fees, utility arrears, and transfer expenses

The bank emphasizes that incomplete, conditional, or late applications will face immediate disqualification without review.

Furthermore, the board of directors maintains the absolute corporate right to accept or reject any individual bid, negotiate with top participants, or cancel the asset liquidation entirely if the incoming offers fail to meet internal valuation thresholds.

Legal Penalties for Defaulting Parties and Long-Term Credit Impacts

The public notice concludes with a stern legal warning directed at the defaulting proprietors, property owners, and their personal guarantors.

If the revenue generated from the sealed bid auction falls short of covering the total outstanding debt, the financial institution will not close the case file.

The bank will continue active legal recovery proceedings against the personal assets of the borrowers to recover the remaining balance.

Additionally, the defaulting individuals face long-term blacklisting by the Credit Information Bureau of Nepal. This regulatory sanction effectively bars them from securing future loan facilities, issuing commercial checks, or opening new corporate accounts at any licensed bank across the country.

For More: Shangri-la Bank Collateral Auction