Officials of the bank told Republica on Sunday that they have issued a 35-day legal notice on December 19 to settle remaining loan liability. [break]
Avco International - the then dealer of Hyundai cars for Nepal -- had opened Letter of Credit (LC) at the bank to import the vehicles. But it had failed to clear bank´s loan even after receiving full and partial payments from persons who had placed orders for the vehicles.
According to the officials, Avco has yet to settle loans and interests amounting to Rs 450 million.
Dipendra Shrestha, head of credit department of Machhapucchre Bank, said the bank was making all possible efforts to contact the owner of Avco International to secure earlier settlement of loans.
Avco International is also facing charge of cheating over 100 customers by failing to deliver the ordered vehicles even after taking full or partial payment nearly a year ago. The conflict between Avco and the bank heightened after the latter declined to release ownership of vehicles without settling loans issued to import the vehicles.
Meanwhile, officials of Nepal Rastra Bank (NRB) along with representatives from Nepal Police and Machhapuchhre Bank have agreed to handover temporary ownership certificate to 55 car owners to facilitate them in using their vehicles.
The decision was taken by the meeting held at NRB office a few days ago.
An NRB official told Republica that the agreement was reached with some conditions.
“We have decided to issue temporary ownership certificate to the vehicle owners for six months. If payment is not made from either Avco or the vehicle owners by then, police will seize the vehicles,” the official added.
Kedar Dhakal, Deputy Superintendent of Police (DSP) at Metropolitan Police Range Hanumandhoka, said that the process of handing over ownership certificate had already begun.
Related story
Russia's new car sales down 25 pct in first 8 months of 2025
