Govt. invalidates passports of blacklisted 80 defaulters

The government has invalidated passports of blacklisted loan defaulters for pushing financial situation be troubled. The Ministry of Finance (MoF) on Wednesday took this decision as per the recommendation of Nepal Rastra Bank (NRB) and cabinet decision.

The MoF decided to annul the passports of 80 blacklisted loan defaulters associated with 27 leading business groups who have defaulted Rs. 12 billion from domestic banks in total.

Beside invalidation of the passports, defaulters have been restricted to transfer ownership of or selling fixed assets, and hold the positions of director or promoter in any company.

MoF, has accused those defaulters of disrupting economic system and endangering public's deposits. MoF is reported to send letters to the Chief Secretary, NRB and other bodies of the government in this regard on Sunday.

A report quoted an unnamed source as saying that Finance Minister Dr. Ram Sharan Mahat also informed about this decision to the Prime Minister.

This decision was made as per the provision of an act regarding bank and financial institutions passed by reinstated House of Representatives and Passport Act.

Citing a source, a report said Nepal Bank Limited had forwarded the names of 11 business groups for the passport seizures, and NIC Bank recommended six groups.

Similarly, Rastriya Banijya Bank provided four names, Himalayan Bank three, Lumbini Bank two and Nabil Bank one for the same purpose.

The Fulbari Hotel Limited, owned by Amatya Group, is the largest defaulters among 27. It was blacklisted on August 2003 owing Rs. 3.60 billion -- Rs 1.30 billion principal and Rs 2.30 billion in interest. Altogether eight borrowers of the group are losing their passports and will be restricted in selling off fixed assets.

Similarly, Mahalaxmi Sugar Mills has defaulted Rs. 1.40 billion and passports of two borrowers from Mahalaxmi will be seized.

Likewise, six borrowers associated with the Biratnagar-based Mang-turam Group have defaulted over Rs. 1.8 billion. Similarly, two borrowers from bankrupt Necon Air are losing their passports. Necon Air has defaulted Rs 400 million.

Govt. invalidates passports of blacklisted 80 defaulters

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