CIAA files case against bank fraudsters

KATHMANDU:

The Commission for the Investigation of Abuse of Authority (CIAA) on Friday filed a case against the then top officials of Nepal Gharelu Tatha Sana Udyog Bikash Bank for issuing a loan with over-valuation of a low-grade land.

According to a press release issued today by CIAA Spokesperson Shreedhar Sapkota, then Executive Chairperson Sitaram Prasain, General Manager Bhagawat Shrestha, Senior Manager Sunil Gurung and Loan Manager Him Gurung allegedly issued a loan to one Keshav Lal Khosi Shrestha, worth over Rs 7 million, with the land situated at Sunsari Aauribani VDC-5, worth meagre Rs 1,87,500 as collateral.

The debtor Shrestha and his agent Sunil Pradhan as well as clerk (Kharidar) at the Land Revenue Office, Sunsari Padam Prasad Khatiwada are also mentioned as defendants in the case.

The anti-corruption constitutional body has sought a fine of Rs 15.8 million from each of the defendants.

The Special Court had sent them to judicial custody yesterday. They were arrested by the CIAA Wednesday.

This is the first time the anti-graft body has acted against a fraud case in a private bank amidst opposition from banking and financial sector against its intervention and crackdown on private sector.

The Bank is now renamed as Yeti Development Bank Ltd.

Source: THT