CIB blacklists NB Group

KATHMANDU, NOV 4: 

Troubles for NB Group will not subside any time soon as the Credit Information Bureau (CIB) has blacklisted the group’s chairman and family members for failing to pay back loans taken from Nabil Bank. 

CIB has blacklisted Jit Bahadur Shrestha –– NB Group’s chairman, Laxmi Bahadur Shrestha –– managing director, Jen Shrestha, Anar Devi Shrestha and Purna Bahadur Shrestha for defaulting on loans taken from Nabil Bank worth Rs 150 million. 

Credit Information Bureau blacklisted the Shrestha family for loans taken by Kathmandu Recreation Center, Siddhi Ganesh Investment, and Sangrila Investment and a personal loan taken by Jen Shrestha, according to CIB’s notice. 

Jit Bahadur Shrestha is also the chairman of NB Insurance and board member of Nepal Bangladesh Bank. Likewise, Laxmi Bahadur Shrestha and Jen Shrestha are also in NB Insurance’s board. All three are now ineligible to hold the positions by default following the blacklisting as per the regulations governing the companies.

Nepal Rastra Bank had also penalised Laxmi Bahadur Shrestha with a fine of Rs 500,000 two months back for his involvement in unlawful borrowing and writing back of loans from Nepal Bangladesh Bank promoted by NB Group. Following the penalty, he had to step down from the bank’s board.

Moreover, Nepal Bangladesh Bank published a 35-day notice today asking 11 borrowers to pay back their loans that have shares and assets belonging to NB Group’s subsidiaries like Nepal Bangladesh Bank, NCC Bank, Siddhi Ganesh Investment, Sangrila Investment, NB Investment, and National Hydropower among others. 

These loans were allegedly borrowed by friends and family of the group. Two defaulters –– Jush Shrestha and Gita Shrestha –– are the son and sister-in-law, respectively, of the group’s chairman Jit Bahadur Shrestha that have been called by Nepal Bangladesh Bank to pay their outstanding principal and interest to the bank within 35 days. 

NB Insurance, that is also promoted by the group, has just come out of suspension, after it was found to be engaged in a series of misappropriation of funds. Blacklist numbers of Siddhi Ganesh Investment, Kathmandu Recreation Centre, Sangrila Investment and Jen Shrestha are 4418, 4419, 4420 and 4421 respectively.

Source: THT