Himalayan and Bank of Kathmandu won the Melamchi Construction case in China High Court, Guarantee amount will be Return

Aug Wed 2022 02:32:35

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Himalayan and Bank of Kathmandu won the Melamchi Construction case in China High Court, Guarantee amount will be Return

Kathmandu. After 10 years of efforts, Himalayan Bank and Bank of Kathmandu (BOK) have won the case in China. Due to non-return of the bank guarantee amount, more than one and a half billion rupees of two bank accounts were lost. Both banks won the case last Friday. Both banks have been notified by the Chinese court to return the money. "We send claims to get our money back," said Himalayan Bank CEO Ashok Rana.

Bank of Kathmandu will get back 66.25 million US dollars and 14.11 million Euros and additional damages as soon as the Melamchi Guarantee bill amount is paid. This comes to about one billion rupees in Nepalese rupees. Himalayan Bank will also get back Rs 70 crore.

Two years ago, both the banks won the case. But at that time, the losing party had to go to the higher court. Now there is no way up. In that case, China Construction Bank has to return the money of both banks.

The Chinese bank, China Construction Bank, which has a guarantee on behalf of the China Railway, which got the contract for the Melamchi water supply project, gave a counter guarantee to the Himalayan Bank and the Bank of Kathmandu. These two Nepali banks have won the payment case related to the guarantee.