Banking Khabar / The Commission for Investigation of Abuse of Authority (CIAA) has launched an investigation into Prabhu Bank over allegations that it accepted and later auctioned land exceeding the prescribed landholding limit as collateral in violation of legal provisions.
The CIAA’s Pokhara office has sent a letter to the bank’s central office, directing it to submit its response, comments and certified documents within 15 days.
The complaint alleges that the bank accepted land as collateral beyond the legally permissible limit for mortgaging land exceeding the prescribed landholding ceiling and subsequently auctioned the same property.
The case is related to an integrated agricultural project operated at Jalkeni Phant in Duradanda, Lamjung.
The agricultural project was launched through a collective investment of 143 individuals, including young people who had returned from Israel after gaining knowledge and experience in agricultural technology. The project was established on around 220 ropanis of land with an investment of approximately Rs. 180 million.
The project had planned to undertake various agricultural activities, including poultry farming, cattle farming, goat farming and fish farming.
The CIAA’s investigation is expected to clarify whether Prabhu Bank followed the required legal procedures while accepting the land as collateral and whether the subsequent auction process was conducted in accordance with applicable rules.
