Lawmakers on Tuesday expressed concern at the involvement of Agricultural Development Bank Limited (ADBL) in misappropriating funds while selling land. Speaking at a parliamentary Finance Committee meeting, lawmakers also accused bank officials of issuing loans against substandard collateral and putting the bank’s financial health at risk. 

ADBL recently sold 7 bighas of land in Dhulabari, Jhapa for Rs570 million although the actual cost is over Rs1 billion. The bank which is 51 percent owned by the government is reported to have sold the land to a firm that lacks a public account number. ADBL has sold the land while the case was still under consideration at the Lalitpur Appellate Court.

ADBL Chief Executive Officer Lila Prakash Sitaula said that they had sold the land to the firm after receiving the go-ahead from the Commission for the Investigation of Abuse of Authority. According to him, the bank sold the land to the highest bidder. 

Similarly, the ADBL has been blamed for providing loans worth Rs400 million to 32 business firms by accepting substandard collateral. Earlier, the parliamentary Finance Committee had received complaints against the bank for funding big business houses against low price land.

“For this reason, loans amounting to Rs350 million is at risk of becoming bad loans,” the lawmakers said.