KATHMANDU: The Supreme Court today gave Nepal Rastra Bank the green signal to take action against the Nepal Development Bank.
A division bench of Justices Kalyan Shrestha and Sushila Karki upheld the decision of the Department of Cooperatives that had suspended NDB’s deposits in the Nepal cooperatives Organisation Limited stating that the bank was in the liquidation process. The NDB had deposited Rs 90 million in the NCOL, while it also owns a share of Rs 10 million in the cooperatives.
The Department of Cooperatives is the regulatory body of the cooperatives. The Department of Cooperatives had earlier suspended the NDB’s deposits in the NCOL — which was allegedly running in bad shape — acting on the request of the Nepal Rastra Bank. The bench stated that the NDB’s bank account had been suspended to preserve the depositors’ interest.
Prem Prasad Pandey, an NRB advocate, said, “The SC has protected the depositors’ money as the NDB had secretly deposited public deposits in the NCOL,” he said, adding that the NDB and NCOL were owned by the same investors.
Chandra Bahadur Singh, an account holder, had moved the Supreme Court seeking its intervention against the action taken by the Department of Cooperatives on June 7.