NRB told to allow MSCI to withdraw money from its bank accounts

Kathmandu, December 27

The Supreme Court issued an order to Nepal Rastra Bank telling it not to prevent Mukti Shree Cement Industries Pvt Ltd from withdrawing money deposited in its bank accounts as per its need and (investment) timetable until further decision.

A single bench of Justice Deepak Raj Joshee passed the order on Tuesday in a petition for a writ of certiorari filed by the industry against Nepal Rastra Bank and others.

The apex court prepared the full text of the order today in which it said that it had issued the order keeping in mind the balance of convenience. The court ordered both sides to present their arguments on January 8 in the case.

MSCI belongs to Mukti Shree Group, which is promoted and chaired by Businessperson Ajeya Raj Sumargi.

Advocate Megha Raj Pokharel said his client, MSCI,   moved the court after the NRB froze its $ 7 million sent to its Investment Bank account by an overseas company.  He said MSCI had received a total of $ 35 million loan from a foreign company with the permission from the Investment Board Nepal between mid-April 2015 and mid-April 2016.

According to Pokharel, the NRB allowed his client to use $ 28 million out of $ 35 million, but it prevented his client from withdrawing the remaining $ 7 million after media outlets falsely accused the industries of money laundering.

Pokharel also said that the Investment Board Nepal had only told the industry to seek permission from the NRB for repatriating money and not for receiving money from foreign company. “Our client suffered because the NRB unfairly decided to prevent our client from withdrawing money from its account in the face of media accusations,” Pokharel added.