Residents of Milanchowk in Butwal, joined by a group led by Durga Prasai, have reinstalled the former owner in a house auctioned by Lumbini Development Bank. The residents and the group allege the property was sold for far less than its value and say the auction was carried out in collusion with a third party.
The house belonged to businesspersons Durga Bahadur Poudel and Laxmi Basnet Poudel, who had borrowed 48 lakh rupees for a printing press. According to the information provided, they did not repay 58 lakh rupees, including interest, and the bank subsequently auctioned the house for 53 lakh rupees.
Dispute over the house auction
Locals and the group led by Prasai say the house was worth at least 1.5 crore rupees and was auctioned cheaply. The allegation of collusion has been made by the residents and the group; it has not been established as a finding.
Lumbini Development Bank says the borrowers did not repay their loan. The available information does not provide further details about the bank’s response to the allegations concerning the auction price or alleged collusion.
