Shangrila Development Bank Limited has invited sealed bids for the auction and sale of various movable and immovable properties pledged as collateral by borrowers who have failed to repay their outstanding loans.
The bank has initiated the auction process after borrowers, collateral owners, and personal guarantors repeatedly failed to settle their outstanding liabilities despite receiving previous written, verbal, and formal public notices.
Shangrila Development Bank published the auction notice in the national daily Nepal Samacharpatra on October 4, 2026 (Ashoj 18, 2083), inviting interested individuals, firms, and institutional investors to participate in the sealed-bid process in accordance with prevailing banking regulations in Nepal.
Bid Submission Deadline Set for October 10
According to the published notice, interested bidders must submit their sealed bids within regular banking office hours by Ashoj 24, 2083 (October 10, 2026).
The bank has scheduled the opening of sealed bids for 11:00 AM on the first working day immediately following the submission deadline. The bids will be opened at the designated branch offices of Shangrila Development Bank where the respective loan accounts are registered.
Bidders or their legally authorized representatives are welcome to attend the bid-opening session. However, the bank has clarified that the absence of bidders or their representatives will not interrupt or delay the opening process.
Properties to Be Sold on an ‘As Is Where Is’ Basis
The bank has stated that all listed movable and immovable properties will be auctioned on an “As Is Where Is” basis, meaning that the assets will be sold in their existing legal, physical, and structural conditions.
Successful bidders will be required to complete the full payment and comply with all applicable legal and regulatory requirements before ownership of the land, buildings, or movable assets is transferred through the relevant government authorities.
If the properties fail to attract successful bids through the competitive sealed-bid process, Shangrila Development Bank reserves the right to acquire the assets directly or adopt other legally permitted debt-recovery measures under prevailing laws.
Borrowers Face Blacklisting and Further Legal Action
The public notice also serves as a final opportunity for defaulting borrowers and guarantors to settle their outstanding financial obligations before the bank proceeds with the forced liquidation of the collateral assets.
The bank has warned that borrowers and guarantors who fail to clear their total outstanding liabilities, including principal, accrued interest, penalties, and associated legal charges, within the stipulated timeframe may be blacklisted by the Credit Information Bureau (CIB) in accordance with Nepal Rastra Bank directives.
Furthermore, if the proceeds generated from the auction of collateral assets are insufficient to cover the total outstanding loan liabilities, the bank reserves the right to initiate further legal proceedings to seize and liquidate other personal movable and immovable assets belonging to the borrowers and guarantors to recover the remaining dues.
The auction initiative is expected to support the bank’s loan-recovery efforts, reduce non-performing assets, and strengthen its overall credit management process.
