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Indra Dhoj Kshetri


Evils of the nation: Top Ten defaulters uncovered

This year’s annual budget for Nepal’s 25 million population amounted just 143 billion rupees. However, 53 Business groups and individuals have defaulted 25 billion rupees with two largest banks of the country. The money was deposited at the banks by the individuals who worked hard to earn their two squares of meal. Those groups borrowed the money from Nepal Bank Limited (NBL) and Rastriya Banijya Bank (RBB). Both the banks are the government owned and the money kept there is people’s trustee. But no serious measures have been opted to make the defaulters to repay the money so far. For the first time, Nepal Rastra Bank, the central bank of the country made public the name of 53 largest defaulters this August.

Subsequently, the Parliamentary Account Committee (PAC) directed the central bank and the government to go tough against those defaulters. Nepal Bankers’ Association Credit Information Bureau has already enlisted 2912 willful defaulters till October 9 this year. And the number is increasing rapidly. Those people are enjoying with the people’s money but unwilling to repay it. These defaulters have posed challenges to the overall management of the economy. Experts say bad loan is the major challenge confronting the financial system of Nepal. Those defaulters have strong political connection that has been saving them since years from any action. In the past, the defaulters bargained with the Royal Regime and the regime excused them in return to their support to it. Past experiences have proved that blacklisting alone is not enough to deal with powerful defaulters because of their strong political and other connections.

However, after the Nepal Rastra Bank made public the name of 53 wilful defaulters with largest amount, the defaulters are making unnecessary hues and cries, siding responsibility to the ten years of conflict. Under the umbrella of Federation of Nepalese Chamber of Commerce and Industries (FNCCI), they are trying to overcome the prospective actions. People are concerned that, despite their failure to pay back the loans, they have been living a lavish life with high profile. After this incident, there has been growing controversy over the socials status of the defaulters and repayment of loan. The enlisted personalities still enjoy a significant social status and live a lavish life. Making public the name of those defaulters, Governor of Nepal Rastra Bank, Bijayanath Bhattrai had said, “Even after being blacklisted, we have found no fundamental change in the lavish lifestyle of willful defaulters.”

Enjoying with the people’s money but resisting repaying the loans, is an evil task. The defaulted money amounts to nearly eleven billion rupees from ten groups alone. The everestuncensored has tried to dig out their social status so that the people could raise the fingers and say you are the EVILS OF THE NATION. Social restriction will be an answer to the crime of those defaulters who have been challenging total economy of the country.

Defaulter No. 1: The Amatya Enterprises (Pyush Bahadur Amatya Group)
Pyush Bahadur Amatya
Pyush Bahadur Amatya is the chief person of this group. This group has defaulted the largest amount, 3 billion 621 million rupees alone from the banks. The amount is exactly two times more than the amount of the second largest defaulter. And it is also the group with least chance of loan recovery. The group dealt with Electrical Equipment, Supplies and Component Manufacturing. Besides, the large amount of money was spent on Fulbari Resort and Spa at Pokhara. It was one of the largest business groups in the country. This group owns Amatya Enterprises that is an exclusive representative of Mitsubishi Motors Corporation, Japan, General Trading & Engineering, Nepal Power Eng. Co., Everest Ice Creams, Mt. Everest Brewery and Amtronics. It’s largest investment project is Fulbari Resort and Spa. The once shut Fulbari Resort and Spa has recently been handed over to a Resort Management Company named Blue Flag Nepal. However, none of these business are doing well now. The banks have predicted that it will be most difficult to recover loan from this group. And the Amatya family is still living a lavish life.

Defaulter No. 2: Mangatu Ram (Mangatu Ram Agrawal Group)
The second largest defaulter is Mangatu Ram group. This group has the default amount of 1 billion 820 million rupees from both the banks. This group owes 1.521 billion to Rastriya Banijya Bank and 0.124 billion to NBL. Mangaturam Agrawal is the chief Owner of the Mangaturam Group. He is aided by his five sons Subodh, Suresh, Krishna, Narayan and Damodar. The group took the loan from Rastriya Banijya Bank Rani Branch, Biratnagar. And after investigation, the Commission for the Investigation of Abuse of Authority (CIAA) had filed a charge sheet against those six Agrawal family members including six RBB officials on June 2005. The CIAA had concluded that RBB Rani branch had released Rs 867 million against a collateral worth Rs 168.64 million in 1998. And it charged them of incurring loss of 1.38 billion rupees as of April 2005. This has reached to 1.521 billion rupees including interest as of this July. Subodh Kumar, Suresh Kumar, Krishna Kumar and Narayan were arrested in connection with the scam on December, 2004 for failing to deposit bail amount demanded by the CIAA. However, Mangaturam and his son Damodar are still at large.

This group owned many enterprises including Narayan Vegetable, jayakali biscuit, ganesh Plastic, Annapurna soap, Laxmi footwear, Annapurna Iron, Dantakali, Fulpati enterprises and Ghatasthapana enterprises. Now, very few of the industries are under operation and the CIAA had concluded that there is the possibility of incurring only 145 million rupees from the security bond. So why, repayment of loan from this group also seems almost impossible.

Defaulter No. 3 Basulinga Sugar Mills (Chand Group)
Arun Chand
This is just ridiculous that the politicians are protecting the evil tasks. The worst example is the case of Basu Linga Sugar Mills. This has not only defaulted the people’s billions of money from the banks but also not paid the farmers with the cost of their sugarcane. And it is non other than the enterprise owned by Arun Chand, the son of Lokendra Bahadur Chand, the Royal loyal and the multiple times Prime Minister of the country. Another accomplice of this group is Vijaya Kumar Goel. This Group owes 1 billion and 26 million rupees to the two banks. It is one of the biggest industries of Nepal and now is on the verge of bankruptcy. It is situated at Kailali district and has remained closed since long time back. The sugarcane farmers claim that the mill management was yet to pay the outstanding dues of Rs. 40.4 million to some 4,500 farmers in Kailali district. The Mill used political influence to take the loan from various banks during the Panchayat era. And now, it seems almost impossible to incur the amount back.

Defaulter No. 4 Bir Kirat (Bir Bahadur Rai group)
Bir Bahadur Rai is the chief of this group. This group borrowed the money from Rastriya Banijya Bank to run Bir Kirant Group Narayanpur, Kailali and Kirant Traders Baluwatar . Nepal Bankers’ Association, Credit Information bureau had blacklisted this group in January 1991. The recovery of loan hasn’t been possible even in those fifteen years. And the loan now amounts to 852 million rupees. Now, none of these business institutions are making any business.

This group also invested on Durga Mill, Satti. Besides, Bir Bahadur Rai invested on Dantakali Jutta Chapal Udhyog, Dharan, in partnership with Bishnu Kumar Limbu, Harka Bahadur Limbu, Hemraj Rai, Indra Bahadur Thebe (Limbu), Indra Kala Thapa, Laxmi Bhakta Bantawa, Narendra Bahadur Gurung, Prasad Thebe and Prem Bahadur Kafle. This group also invested on Durga Mill, Narayanpur in partnership With Bam Bahadur Bhandari, Durga Kumari Rai, Prem Bahadur Bhandari, Ram Bahdur Kunwar and Ramesh Rai. Sarita Rice Mill, Satti Emporium, Sujata Trading, Sumnima Dal Udyog were also the partners in Durga Mill.

Defaulter No. 5 Momento Apparels (Chandi Raj Dhakal)
Chandi Raj Dhakal
Momento Aparels made an export of USD 12 million in the year 2000 that fell to 5.6 million in the following year. It exported 7.7m worth garment in 2002. It is the manufacturer and exporter of readymade garments. It was the top in 2000 and second largest exporter of Nepali garments by volume in following two years. It had the annual turnover of 1000 million rupees in those years. The company still holds top position in producing and exporting the garment. It is ridicule that, such well operating company stands fifth in the top bank loan defaulters of the country. And owes 709 million rupees to the Rastriya Banijya Bank.

The biggest ridicule is that the owner of the company holds the highest leadership of the business community in the country. The owner of the Company Chandi Raj Dhakal is incumbent Chairman of the Federation of Nepalese Chamber of Commerce and Industries (FNCCI). It was set up by Dhakal in 1993 in partnership with a US citizen. However, Dhakal solely owns the company now. Ignoring to repay the bank loans, Dhakal has recently set up a Pashmina factory called Emperor Gold Mount, in Jhapa, and Beijing Roast Duck Restaurant in Kathmandu, both in joint venture with Chinese parties.

Defaulter No. 6 Maha Laxmi Garment (Brij Gopal Innani group)
Brij Gopal Innani is the founder of this group. He founded Mahalaxmi Garment Industries Group in 1980. It manufactures and exports the readymade garments. It has the annual sales turnover of USD 107 million. It was the third largest exporter of garment in 2000 with the value of 7.6 million USD. Despite significant turnover, the group has stood sixth in the list of largest bank loan defaulters. It alone owes outstanding due of 609 million rupees to the Rastriya Banijya Bank. This group also owns another industry named Girija Garment Industries.

Defaulter No. 7 Sanyam Veg & Oil
Sanyam Vegetable and Oil Industries is the seventh in the list. It owes 595 million rupees to the Rastriya Banijya Bank. It was the 14th in the list of top vegetable oil exporters in the year 2004/5 with the export of 160metric tons of vegetable oil. But now it is not doing any business. So why the sanyam group seems worst among the list from the perspective of loan recovery.

Defaulter No. 8 Mahalaxmi Sugar & Chemical (Choudhary and Kanaudiya Group)
Binod Kumar Choudhary
Photo: Binod Kumar Chaudhary
This is the joint venture with country’s one of the largest business houses. This group is promoted by the head of Chaudhary Group, Binod Kumar choudhary. This group also holds the most attractive social status as well. Another member of the group Birendra Kumar Kanaudiya is also an incumbent Member of the House of Representatives. He is a Nepali congress MP from Kapil Bastu -3. The Chairman of the group Lunkaran Das Choudhary is a’ revered’ industrialist in the country. He also holds Gold Star Nepal (Industries) (Pvt.) Ltd. Other members are Sarika Choudhary, and Muralidhar Agrawal. The group alone owes 516 billion rupees to the Rastriya Banijya Bank and the total due amounted to 1.38 billion by Mid April this year from five financial institutions of the country.

This group has been brought into controversy in the recent days. For the same case, the parliamentary Account Committee has recommended the Seven Party Alliance to impeach against those Supreme Court Justices who gave verdict in the favor of this group. The SC Justices Arjun Bahadur Singh and Badri Kumar Basnet had ordered Nepal Bankers Association Credit Information Bureau to delist the name of Binod Kumar Choudhary from the black list of bank loan defaulters. Choudhary had argued that as he had handed over the management of the Mills to Kanaudiya, his name be delisted.

In another account, Kanaudiya group also owes an outstanding due of 229 million rupees to Nepal Bank Limited.

Defaulter No. 9 Rohit (Rohit Prasad Shrestha Group)
This group is blacklisted by the credit Information bureau for many companies. Other members of this group are Chandra Laxmi shrestha, Sobhit Prasad Shrestha, Rahis Prasad Shrestha and Lal Prasad Shrestha. This group also owns Triveni pet containers, Bagmati Khandsari Sugar Factory and Rohit Brothers. It owes 490 million rupees to the Nepal Bank Limited.

Defaulter No. 10 Mahendra Sugar (Pathak group)
The Pathak group that owns Mahendra Sugar and General Industry is the tenth in the list. It owes 480 million rupees to the Nepal Bank Limited. The members of this group are Bimala Devi Pathak, maitra Devi Pathak, Prabin Dev Pathak and Santa Dev Pathak.

Following is the list of other ‘honored’ industrialists of the nation who could not come to this list but made their position in the top 53 in the August 15 release by Nepal Rastra Bank.

Defaulter no. 11. Universal Leather Industries Rs. 377 million (RBB)

Defaulter no. 12. Kishore Pradhan Rs. 373 million (RBB)

Defaulter no. 13. J.P. Group Rs. 368 million (RBB)

Defaulter no. 14. L.P. Acharya Rs. 284 million (NBL)

Defaulter no. 15. Drabyaratna Rs. 260 million (RBB)

Defaulter no. 16 Tib Trade Rs. 256 million (RBB)

Defaulter no. 17 Mohan Sahani Rs. 248 million (NBL)

Defaulter no. 18. Greenwich Village Hotel Rs. 246 million (RBB)

Defaulter no. 19. Baba Rs. 241 million (RBB)

Defaulter no. 20 Kanaudiya Group Rs. 229 million (NBL)

Defaulter no. 21. Brighter Rs. 219 million (RBB)

Defaulter no. 22. New Mittal Rs. 195 million (RBB)

Defaulter no. 23. Space Time Network Rs. 179 million (RBB)

Defaulter no. 24. Lalbani Rs. 179 million (RBB)

Defaulter no. 25. Nepal Professional Garment Rs. 177 million (RBB)

Defaulter no. 26. Ashok Textile Industries Rs. 160 million (RBB)

Defaulter no. 27. B.P. Lohani Rs. 160 million (NBL)

Defaulter no. 28. Ram Kumar Bhadrapuria Rs. 156 million (RBB)

Defaulter no. 29. Milan Group Rs. 154 million (NBL)

Defaulter no. 30. PKSK Group Rs.153 million (NBL)

Defaulter no. 31. Himalyan Brewery Limited Rs. 152 million (RBB)

Defaulter no. 32. Prakash Tibadewala Rs. 143 million (RBB)

Defaulter no. 33. Gorakhkali Rubber Industry Rs. 137 million (RBB)

Defaulter no. 34. Vaishali Hotel Rs. 137 million (RBB)

Defaulter no. 35. Hotel Oriental Rs. 125 million (NBL)

Defaulter no. 36. Cross country Nepal Hotel Rs. 121 million (RBB)

Defaulter no. 37. Dhaulisati Rs. 112 million (RBB)

Defaulter no. 38. Nakarmi Group Rs. 109 million (NBL)

Defaulter no. 39. N.K. Sarraf Rs. 103 million (NBL)

Defaulter no. 40. Atmaram Group Rs. 91.3 million (NBL)

Defaulter no. 41. Annapurna Textile Rs. 85 million (NBL)

Defaulter no. 42. D and D Clothing Pvt. Ltd. Rs. 83 million (RBB)

Defaulter no. 43. Khatri and Company Rs. 70.6 million (NBL)

Defaulter no. 44. Lalbani Group Rs. 50.7 million (NBL)

Defaulter no. 45. Cross Country Nepal Hotel Rs. 41.1 million (NBL)

Defaulter no. 46. Golcha Group Rs. 23.5 million (NBL)

Defaulter no. 47. L.B. Shrestha Rs. 22.7 million (NBL)

Defaulter no. 48. Hotel Tara Gaon Rs. 14.5 million (NBL)

Defaulter no. 49. Jyoti Group Rs. 7.09 million (NBL)

Defaulter no. 50. Indrasen Agrawal Rs. 3.74 million (NBL)
(Three have been overlapped because above mentioned three out of top ten groups took the loan from both the banks)

(Source:http://www.gorkhapatra.org.np/content.php?nid=1319, date of assessment Oct. 31, 2006/Also available in The Rising Nepal, August 16, 2006)