Court issues interim order not to sell IFIC shares to Chaudhary Group Nepal

 The Kathmandu District Court has issued an interim order not to sell the shares of IFIC in Nepal Bangladesh Bank to the Chaudhary Group. The court issued the order in a case filed by Sunrise Bank chairman Motilal Dugad.

Dugad had filed a case in both the district and high courts against Nepal Bangladesh Bank, alleging that the shares of IFIC were being given to another group after an agreement was reached to sell them. The district court issued an interim order on Tuesday. "The district court has ruled in our favor," said Dugad. "We have issued a show cause order to the bank within seven days.

IFIC Bank of Bangladesh, the major shareholder of Nepal Bangladesh Bank, is about to exit after selling its shares. There is a dispute over who will buy the shares. Dugad said, "We have proposed to buy the shares on March 31, 2021 and the agreement was reached on April 2 from Uta." Following the court's interim order, the issue of merging Nepal Bangladesh Bank with Nabil Bank has also become controversial. Following the mutual agreement of the Chaudhary Group to buy the shares of IFIC Bank, Nabil and Bangladesh Bank had informally agreed to proceed with the acquisition process.Accordingly, both the banks had formed a merger committee.

Nabil Bank had activated the old merger committee while Bangladesh Bank had formed a new merger committee. However, even before the two banks formally proceeded with the process, there was a dispute over the purchase of shares by a foreign investor in Bangladesh Bank.