The district administration wrote to the bank in this regard on Monday on the basis of a complaint lodged by Avco International, one of two distributors for Korean auto giant Hyundai in Nepal. The complaint accused the bank of refusing to hand over the loan clearance documents even after payment of all outstanding loan principal and interest. [break]
“We wrote a letter to Machhapuchchhre Bank on Monday, seeking its formal clarification over Avco’s charges,” Chief District Officer Laxmi Dhakal told myrepublica.com.
The district administration on July 20 gave a seven-day ultimatum to both Avco International and Machhapuchchhre Bank to resolve all outstanding issues so that the vehicles could be delivered to customers, who have been waiting for months. Some of them have paid the full amount for the vehicles.
The district administration also warned Avco International of legal action for cheating customers if any further delay is caused.
CDO Dhakal informed that Avco International has submitted all documents of payment made to Machhapuchchhre. “Now we have to wait for the bank’s response before initiating legal action,” he said.
Stating that all documents have been submitted to the CDO, Chairman of Avco International Sanjay Pradhan said, “We are keen to solve this problem soon, but the bank must response at once.”
Avco International has alleged that Machhapuchchhre Bank has been dillydallying over the release of customs clearance documents even after all outstanding payments to the bank had been cleared. This is the main reason for delay in delivering the vehicles to customers, it has claimed.
Sources at the district administration said that Machhapuchchhre Bank a few days back had said it would respond only to Nepal Rastra Bank, the regulator of Nepal´s banking system.
“However, Machhapuchchhre has not said anything in response so far and a few days back it said it will reply only to the Rastra Bank. That is why we are forced to write the letter today,” a source at the district administration office said.
Avco is facing charges of cheating over 100 customers and not delivering on vehicle orders for which full or partial payments ranging from Rs 50,000 to Rs 700,000 had been made. Some 90 cars are lying idle at Birgunj for customs clearance, but Avco has claimed that the necessary payment has been made to the bank since the last five months.
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