BIRATNAGAR, Dec 18: The Biratnagar High Court has dismissed a petition filed by medical entrepreneur Durga Prasai, who had launched a campaign against repaying bank loans. This decision paves the way for banks to recover the loans he has borrowed.
After the banks threatened to recover the loan, Prasai filed a petition at the High Court in Biratnagar, Ilam bench, requesting an injunction. On Tuesday, Chief Judge Bipul Neupane and Judge Kaji Bahadur Rai dismissed the petition.
The court dismissed the petition filed by Tika Ram Adhikari on behalf of Prasai against four banks, including Kumari Bank's Birtamod branch. This decision now clears the way for the banks to recover the loan.
Prasai had taken loans from four banks for operating the Purbanchal Cancer Hospital. For the past two years, he has been refusing to repay the loans taken from banks and financial institutions, stating that he would default on those loans.
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Prasai's campaign affected the investment and loan recovery of microfinance institutions working in rural areas. He organized a group to carry out activities against the financial institutions. To stop the recovery of the loans he has taken for his own hospital, he approached the court.
Yugen Kaji Bantawa, the information officer at the High Court, Biratnagar, Ilam Bench, stated that the court dismissed the petition on Tuesday. In its order, the court explained, "The petitioner had already filed a case under ordinary jurisdiction to enforce the contract regarding the loan with the opposing bank, and legal proceedings had been followed. The purpose of the letter dated April 23, 2023 has been fulfilled, and the petition does not present any situation where the court should issue an order as requested by the petitioner."
On June 23, 2023, the petitioner filed a request for an injunction, naming four banks, including Kumari Bank's Birtamod branch, as defendants. The Ilam Bench issued a show-cause order on June 25, 2023, in response to the petition. Hearings on this case, which was scheduled for hearing 18 times, were postponed nine times.
Tuesday's verdict opened the way for the banks to recover the loan. If Prasai does not repay the loan, the banks can recover it by auctioning the collateral. Durga Prasai has taken over Rs 2 billion in loans from four banks for the Purbanchal Cancer Hospital.
The Supreme Court opened the way for Prasai to operate B&C Medical College last June.
Police have taken Prasai into custody while he was preparing to operate a medical college, accusing him of having connections with a person arrested for threatening Nepali businessmen in the name of Indian gang leader Lawrence Bishnoi.
Police arrested Prasai on November 19 for making a video and spreading rumors against Prime Minister KP Sharma Oli based on fake documents. The Kathmandu District Court ordered his release on a bail of Rs 40,000 in a case registered under the Electronic Transactions Act, 2063 BS. However, he was not released due to ongoing investigations into organized crime and criminal profiteering charges.
