Appellate court convicts Gurkha Development Bank ex-chair Bamjan, acquits other promoters

ShareSansar, March 26:

The Appellate Court Patan has convicted the then Chairman of the crisis- ridden Gurkha Development Bank DB Bamjan for misappropriating Rs 70 crore in loan mobilization.

Upholding an earlier decision of the district court, joint bench of justices Thir Bahadur Karki and Hari Prasad Bagale gave the verdict yesterday, and also gave clean chit to other promoters of the bank such as Nirmal Gurung, Rakesh Adukiya, Sanjeev Mishra, Punam Khetan, Ruchi Jajudiya, Sanjeev Agrawal and Jeevan Ghimire.

Altogether 13 cases were filed at the appellate court regarding irregularities in Gurkha Development Bank. In most of the cases, Bamjan was found guilty, according to the decree issued by the joint bench yesterday.

Bamjan can now move the Supreme Court if he wishes.

The verdict comes six days ahead of the Special General Meeting of the development bank, which is slated for March 30 though not much is expected from the event.

Once the financial scam concerning the class ‘B” BFI and the internal feuds between the promoters came to the light back in January 2011, Nepal Rastra Bank had declared the bank as crisis-ridden in March of the same year.

Bamjan and a few top officials were then rounded up and are in prison on banking fraud.

The central bank had then handed over the bank’s management on a contract basis to independent consultants. But when they, too, failed to woo investors. The central bank then took over the management itself -- but to no avail. Capital Adequacy Ratio of the development bank is still negative by 31 percent, and its NPL stands at staggering 85 percent of the total loan.

If NRB fails to improve the health of the development bank, it might be compelled to liquidate the company the way it has liquidated two BFIs -- Nepal Bikas Bank and Samjhana Finance -- in the past.