CIAA asks NRB to probe loans issued against Lalita Niwas land

Published On: February 6, 2020 08:16 AM NPT By: Republica  | @RepublicaNepal

KATHMANDU, Feb 6: The Commission for the Investigation of Abuse of Authority (CIAA) has decided to ask the Nepal Rastra Bank (NRB) to investigate into the loans issued by various banks and financial institutions (BFIs) against the collateral of public, government and Guthi lands of Lalita Niwas that were ‘illegally’ captured by several powerful people.

According to a statement issued by the CIAA after filing a case at the Special Court against those involved in the land scam, BFIs have floated loans against various plots of Lalita Niwas land as collateral, which has been valued at Rs 2.41 billion. The CIAA has written to the NRB — the regulatory authority for BFIs — to investigate into the loans disbursed against such collaterals and take action toward protecting the depositors’ savings, which finance the loans. While the CIAA’s statement does not mention how much loan was issued by the banks against the collateral lands, the anti-graft body estimates that such loans could be over a billion rupees.

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