The Patan High Court has issued an interim order directing the Mahalaxmi Development Bank not to hold its general assembly.

The bank had scheduled its 20th general assembly at its central office in Durbarmarg, Kathmandu, for January 20. The court issued the order in response to complaints filed against the bank by its shareholders Giriraj Pokharel and Pramod Shrestha.

The petitioners argued that the management wrongfully denied several shareholders from participating in the electoral process to select new bank leadership.

Similarly, the bank management has been accused of only allowing the shareholders close to them to run for elections. The election committee formed to hold the same elections had canceled the candidacy of some shareholders. 

With the postponement of the general assembly, the court has directed the defendants to furnish a written clarification within 15 days.

Earlier, the general assembly of the bank was put off due to a lack of required numbers. Elections of bank operators were also postponed following the court order. The bank’s repeated attempts to hold its general assembly to elect a new governing board has each time been mired in controversy.