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Peoples' Review Insurance Khabar
2 sources · 3 articles
Started 1 week ago · Updated 6 days ago

NIMB CEO's Arrest Sparks Debate on Bank Collateral Rights and Loan Recovery Laws

Photo · mypeoplesreview.com

The arrest and subsequent release of Jyoti Prakash Pandey, CEO of Nepal Investment Mega Bank (NIMB), by the Central Investigation Bureau (CIB) has ignited a debate regarding banks' collateral rights and Nepal's loan recovery laws. Banking professionals express concern that the CIB's actions may intimidate the financial sector, questioning investment security and legal protections for lenders.

  • Pandey was detained in connection with the auction and sale of assets belonging to Smart Telecom.
  • Bankers argue that Section 57 of the Banks and Financial Institutions Act, 2017, and the Secured Transactions Act, 2006, authorize collateral auctions for loan recovery.
  • Concerns have been raised that if banks cannot auction collateral after legal procedures, CEOs of all banks could face similar consequences.
  • Bankers cite Supreme Court precedents supporting a bank's first charge over a property, even against subsequent claims.

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Supreme Court Central Investigation Bureau Nepal Investment Mega Bank Jyoti Prakash Pandey Smart Telecom

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