The loan taken by medical practitioner Durga Prasai from various banks and financial institutions (BFIs) has been the talk of the town, of late.
Having himself taken a large amount of loan from the bank, Durga has been publicly saying that he will waive the loans of others. That is why some of those who have borrowed loans from banks and financial institutions (BFIs) have lent support to him.
After the banks pressured them to pay the interest, Prasai said that the bankers who come to ask for the interest should be smeared with black soot.
With this support, he is now leading an anti-republic movement under the campaign titled ‘Nagarik Bachau Mahaabhiyan.’
People who are frustrated by political parties, royalists and those common people hopeful of debt relief are also participating in the campaign.
How much does Prasai owe to BFIs?
Prasai has taken a loan of Rs 5.57 billion from banks and finance companies for the operation of B and C Medical College and Teaching and Research Center Pvt Ltd.
Banks and finance companies have invested Rs 5 billion 573 million rupees for the operation of B and C Medical College in co-financing.
According to Nepal Rastra Bank sources, Prasai received 760 million from Nabil Bank, 1.2 billion from Prabhu, 1 billion from Kumari Bank (then NCC ), 700 million from Rastriya Banijya Bank, 650 million from Nepal Investment Mega Bank (then Mega), 153 million from Lumbini Development Bank, 110 million from Goodwill Finance and 1 billion rupees from Global IME (then Janata Bank).
Is Prasai paying interest?
The court has given an interim order not to immediately collect interest on loans borrowed by Prasai from Global IME Bank and Kumari Bank.
Last year, Prasai filed a lawsuit in the court claiming that the banks did not comply with the agreement. In favor of which the court issued an interim order and asked the lenders not to recover the principal amount of loan and interest immediately.
Jhapa District Court Judge Ashok Kumar Basnet issued an interim order in the name of B and C Medical College and Teaching and Research Center Pvt. Ltd., and decided to not pay interest immediately. The court had issued an interim order to not pay principal amount and interest until the end of April 13, 2023 or until the full hearing.
Prasai has not paid the interest on a loan from Global IME Bank and Kumari Bank in line with the sane interim order of the court.
The concerned banks informed that the interest of other banks and finance companies is regular.
What happens if he doesn’t pay interest?
During the establishment of B and C Medical College, an agreement was reached with the bank to not charge interest and capitalize the said interest until the physical infrastructure of the college is built, it becomes commercially operational and the first batch of MBBS students are admitted.
However, his medical college could not get affiliation. So now even if he does not pay interest, that interest will be capitalized.
Based on the same agreement, the Jhapa District Court seems to have issued the interim order.
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