KATHMANDU: The Patan Appellate Court today granted permission to the Nepal Rastra Bank (NRB) to liquidate the troubled Nepal Development Bank Ltd (NDBL).

A division bench, comprising judges Mohan Prasad Ghimire and Dinesh Kumar Karki, issued the order as per the demand of the central bank on July 3.

The bench appointed Narayan Bajaj, a Chartered Accountant, to facilitate the

liquidation.

Bajaj has been asked to submit a report within three months to carry out the process.

The court gave the go ahead, citing that there is little chance of turnaround in NDBL’s fortune.

The decision is based on a recent report submitted by liquidator Tirtha Raj Upadhyay, who was appointed by the court itself.

The NRB’s board of directors had shut down NDBL on June 22, while factoring in the staggering losses, which stood at Rs 670.87 million.

NDBL’s total assets add up to Rs 730.13 million. While, the total paid-up capital is pegged at Rs 320 million. NRB has accused the ailing bank of flouting its

directives.

NDBL never paid attention to good governance since its inception 11 years ago. It had got the permission to operate on January 20, 1999.

The court’s verdict spells bad news for the depositors, who may lose their life savings. Many, however, withdrew a part of their deposits during Dashain.