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Court orders Gulzad company’s property auctioned

Court orders Gulzad company’s property auctioned

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Apr 09, 2017 - 18:02

KABULinfo-icon (Pajhwok): Bank-e-Millie Afghan officials say Gulzad trade organization owes $4.3 million to the bank in loan and interest but the group says it has repaid the loan in line with the court’s decision.

Documents of the three courts available with Pajhwok Afghan News show “Gulzad Shirkat under a 16-point protocol singed between Millie bank chief Mohammad Daud and Gulzad company owner Mohammad Ashraf is bound to pay the loan with interest to the bank.”

Under the protocol, the Millie bank issued $3.7 million loan to the company which had to return the money in three years against 12 percent interest in the first year, 13 percent interest in the second and 15 percent markup in the third year.

The protocol clause two says the company is bound to submit the loan installments to the bank at the end of each month without any delay.

The protocol’s clause 9th says: “If the refund date expires and the borrower fails to clear the dues in a period of one month, the bank has the authority to invite bids for the borrower’s property and sell it to recover the loan.”

Bank-i-Millie Afghan

Millie bank officials said the Gulzad trade centre had not paid the interest and other levies for nine months since signing the protocol.

They said after their letters to the company went unanswered, they were left with no option but to move the court against the company.

Millie bank official Javed Wafa told Pajhwok Afghan New the company currently owed $2.6 million in actual loan and $1.7 million in interest on the loan to the bank.

Wafa said the primary and appeals courts and the apex court had handed down their verdicts against the company and had ordered auction of Gulzad’s property to recover the loan.

He said the Gulzad trader centre located in Baraki area of Kabul City had been sealed by the bank over the loan default.

Millie Bank legal advisor Gulam Farooq said they moved the court of appeals after the primary court’s ruling did not satisfy them.

The appellate court had ordered auctioned properties of the company owner and deputy Mohammad Arif and his sons Mohammad Daud and Mohammad Ashraf to recover the loan.

The Supreme Court upheld the appellate court’s decision in the case. Legal advisor to the company, Azzatullah Tariq during an interview with Pajhwok Afghan News claimed the company had paid the loan amounting $3.8 million.

He confirmed the court had ordered auction of Gulzad property to repay the bank loan. He said the company could not be sold six years ago and they had to sell other properties to repay the bank loan.

But he said the bank continued to insist on selling of the company’s property and claim the loan was not fully cleared.

He said the bank should file a new case in the court if it believed its loan had not been fully paid.

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