[ad_1]
Tinley Nangai
The Thimphu Dzongkha Court recently ordered Phajo Nidup of Paro to repay several loans taken from Punjab National Bank (PNB) in Bhutan within six months.
Between 2018 and 2019, Phajo obtained loans from PNB six times, totaling more than N300 million.
Phajo Nidup admitted to the court that he obtained the loans in his own name and in the names of some friends.
Punjab National Bank filed two separate cases against Phajo Nidup: one involving four loans totalling Nu 107 million and the other involving two loans totalling Nu 200 million. These amounts do not include interest and penalties.
The court mentioned that Phajo Nidup had so far repaid only one loan, amounting to N21.5 million, which he had taken out in 2019 to build a five-storey house.
The case was complicated for the court because Phajo Nidup had obtained loans by mortgaging several plots of land with Punjab National Bank. However, some of these plots were also mortgaged with other banks to obtain additional loans, which is not allowed.
Regarding Nu 107 million loan case, the court said if Phajo fails to repay the loan on time, Punjab National Bank can auction his mortgaged land at the current market price.
If the auctioned items are not enough to repay the entire loan, Phajo Nidup must pay the difference. The court also ordered that if no one buys the mortgaged land, Punjab National Bank can transfer the land to his company.
Phajo Nidup explained to the court that his business was not performing well, which affected his ability to repay the loan.
In the case of the N200 million loan obtained by Phajo Nidup in the name of Tshering Wangyel, the court said Punjab National Bank failed to comply with the know-your-customer policy and lacked proper verification.
As a result, the court ordered Phajo Nidup to repay only 70% of the loan. The remaining 30% was divided between Tshering Wangyel and nine PNB officials, with 5% and the company receiving 25%.
In the case of Phajo Nidup v. PNB, the court noted that there were deficiencies in the financial institutions. Some banks did not register the mortgages, some banks did not register them with dates, and some mortgage agreements were not dated.
The court also ordered Phajo Nidup to repay the loan to the Royal Insurance Corporation of Bhutan (RICBL) within three months. Between 2008 and 2019, Phajo obtained seven loans totaling more than Nu 30 million in the names of himself, his wife and other friends.
Today, he owes Nu36,243,000, including principal, interest and penalties.
The court ruled that if Phajo failed to repay the loan on time, RICBL could auction off the mortgaged land at current market prices. If the auctioned land was not enough to repay the entire loan, Phajo Nidup would have to make up the difference.
Besides, the court also ordered that if no one buys the mortgaged land, RICBL can transfer the land to its company name.
[ad_2]
Source link
