Gurkha Dev bank scam: NRB to freeze former officials’ assets
Wed, May 4, 2011 12:00 AM on Others,
KATHMANDU, MAY 04 -
The Nepal Rastra Bank has decided to write to the authorities concerned asking them to freeze all fixed and movable assets belonging to former directors, employees and loanees of Gurkha Development bank, who are responsible for the financial crisis in the institution, and take action against them as per the Banking Offense Act.
The central bank’s board meeting held on April 29 decided to freeze their bank accounts, lockers, shares and other fixed assets.
Officials facing the central bank’s action are former executive chairman Dambar Bahadur Bamjan and directors Nirmal Gurung, Dhan Prasad Rai, Dinesh Shakya, Mina Shrestha, Sanjeev Kumar Mishra, Mahesh Prasad Rijal and Ramesh Tamang. Other officials include immediate general manager Rajendra Das Shrestha—who is also a promoter of the bank—immediate credit department chief Deepak Rana and former director Prabeen Naulakha who had resigned before the scandal came to light.
Nepal Mentha Product Limited Managing Director Rakesh Adukiya, who is also related to Gurkha’s promoter firm Krishi Premura Holding; loanees Sajeev Kumar Agrawal and Jeevan Ghimire; and Ruchi Jajodiya—wife of Adukiya—and Punam Khetan, directors of Krishi Premura, will also be facing the NRB’s action. The central bank has also decided dispatch a letter to authorities concerned, asking them to seize passports of former director Naulakha—who represented the bank’s board from Krishi Premura—loanees Ghimre and Agrawal and former general manager Shrestha. Passports of other former directors have already been seized. As per the Banking Offense Act, they may be slapped with three- to five-year jail term along with the payment of the amount equivalent to the offense and fines.
According to NRB, the main reason behind the bank’s current condition was bad corporate governance. On March 25, the central bank had declared the bank crisis-ridden. According to a Gurkha source, the directors have taken more than Rs 500 million although the Bank and Financial Institution Act (BAFIA) bars promoters and directors from taking loans from their own banks.
Former executive chairman Bamjan has taken around Rs 250 million, while former general manager Shrestha and director Rai have received Rs140 million and Rs 30 million, respectively, through third parties. Former director Dinesh Shakya, who had taken around Rs 100 million from the bank, has repaid almost all the amount, according the source. “Others have not paid a penny,” said the source.
A recent special general meeting of the bank has elected a new executive committee.
According the source, former executive chairman Banjan and immediate credit department chief, among others, were involved in diverting loans worth around Rs 130 million to one Suraj Dahal from the actual loanee Pancha Lal Maharjan.
Likewise, Adukiya had put up shares in various banks in the name of Nepal Mentha Product as collateral to enable loanees Agrawal and Ghimire to get loans for purchasing shares. “We think those loans were taken for Adukiya through Agrawal and Ghimire,” said a Gurkha official.
The bank’s immediate board had decided to purchase land belonging to Krishi Premura in Kamaladi, Kathmandu, although the BAFIA prohibits transactions among people having conflict of interest.
The bank sought to purchase the land for Rs 900 million although the actual market price stood at around one-third of the amount, according to NRB officials. The bank has already paid Rs 300 million for the land as advance. Immediate bank director Nirmal Gurung and Krishi Premura representative Naulakha have signed a deal in which Adukiya is witness. According to the Gurkha source, Adukiya also used to get involved in board decisions as an invited representative although people who are not in the board have no right to intervene in banks’ decisions.
Source: Kantipur
The Nepal Rastra Bank has decided to write to the authorities concerned asking them to freeze all fixed and movable assets belonging to former directors, employees and loanees of Gurkha Development bank, who are responsible for the financial crisis in the institution, and take action against them as per the Banking Offense Act.
The central bank’s board meeting held on April 29 decided to freeze their bank accounts, lockers, shares and other fixed assets.
Officials facing the central bank’s action are former executive chairman Dambar Bahadur Bamjan and directors Nirmal Gurung, Dhan Prasad Rai, Dinesh Shakya, Mina Shrestha, Sanjeev Kumar Mishra, Mahesh Prasad Rijal and Ramesh Tamang. Other officials include immediate general manager Rajendra Das Shrestha—who is also a promoter of the bank—immediate credit department chief Deepak Rana and former director Prabeen Naulakha who had resigned before the scandal came to light.
Nepal Mentha Product Limited Managing Director Rakesh Adukiya, who is also related to Gurkha’s promoter firm Krishi Premura Holding; loanees Sajeev Kumar Agrawal and Jeevan Ghimire; and Ruchi Jajodiya—wife of Adukiya—and Punam Khetan, directors of Krishi Premura, will also be facing the NRB’s action. The central bank has also decided dispatch a letter to authorities concerned, asking them to seize passports of former director Naulakha—who represented the bank’s board from Krishi Premura—loanees Ghimre and Agrawal and former general manager Shrestha. Passports of other former directors have already been seized. As per the Banking Offense Act, they may be slapped with three- to five-year jail term along with the payment of the amount equivalent to the offense and fines.
According to NRB, the main reason behind the bank’s current condition was bad corporate governance. On March 25, the central bank had declared the bank crisis-ridden. According to a Gurkha source, the directors have taken more than Rs 500 million although the Bank and Financial Institution Act (BAFIA) bars promoters and directors from taking loans from their own banks.
Former executive chairman Bamjan has taken around Rs 250 million, while former general manager Shrestha and director Rai have received Rs140 million and Rs 30 million, respectively, through third parties. Former director Dinesh Shakya, who had taken around Rs 100 million from the bank, has repaid almost all the amount, according the source. “Others have not paid a penny,” said the source.
A recent special general meeting of the bank has elected a new executive committee.
According the source, former executive chairman Banjan and immediate credit department chief, among others, were involved in diverting loans worth around Rs 130 million to one Suraj Dahal from the actual loanee Pancha Lal Maharjan.
Likewise, Adukiya had put up shares in various banks in the name of Nepal Mentha Product as collateral to enable loanees Agrawal and Ghimire to get loans for purchasing shares. “We think those loans were taken for Adukiya through Agrawal and Ghimire,” said a Gurkha official.
The bank’s immediate board had decided to purchase land belonging to Krishi Premura in Kamaladi, Kathmandu, although the BAFIA prohibits transactions among people having conflict of interest.
The bank sought to purchase the land for Rs 900 million although the actual market price stood at around one-third of the amount, according to NRB officials. The bank has already paid Rs 300 million for the land as advance. Immediate bank director Nirmal Gurung and Krishi Premura representative Naulakha have signed a deal in which Adukiya is witness. According to the Gurkha source, Adukiya also used to get involved in board decisions as an invited representative although people who are not in the board have no right to intervene in banks’ decisions.
Source: Kantipur
