H&B development Bank Fraud : Police to file case against fraudsters today

KATHMANDU, JAN 25 -

The police will on Friday file a case against 14 persons found involved in banking fraud worth Rs 1.09 billion in H&B Development Bank, including chief accused Niraj Nepal, immediate manager of the bank’s Kuleshwor branch.

Investigation has found that good-for-payment cheques worth Rs 870 million were issued illegally in collusion of the bank staff and two traders. Also, the bank faced a loss of Rs 220 million as the amount, which was supposed to be deposited in the bank’s account, was not actually deposited, but just in papers. The bank will have to bear further losses if the issued good-for-payment cheques are cashed.

The police said they were yet to ascertain whether the accounts, against which the cheques were issued, still have deposits. A source at the Central Investigation Bureau (CIB) of the police said the charge sheet has demanded Rs 1.05 billion from chief accused Nepal, while half of the amount has been demanded from other eight employees under him.

The police have demanded Rs 473.3 million and Rs 172.9 million from bank’s customers Monoj Chaurasia and Jaya Kumar Yadav, respectively, who were involved in the fraud in collusion with Nepal. Both of them are currently on the run. Additional amounts have also been sought from the accomplices of these two traders, including Kumar Dhakal, Ananda Shrestha and Surendra Pradhan.

According to the police investigation, Churasiya was involved in acquiring good-for-payment cheques from H&B for the last year.  A police officer involved in the investigation said Chaurasiya used to return the money withdrawn illegally from the bank on the same day earlier, but he latter started delaying. “Some employees dragged into this case are just the ones who just obeyed their senior,” said the police source.

A police officer claimed the central bank did not cooperate to bring H&B’s chief executive officer under the investigation. But a central bank source said the regulator provided the required and sought cooperation to the police. “NRB has assigned a deputy director to help the police in this case,” said the source.

As a result of this scam, ordinary people who deposited a huge amount of money in the name of these traders in return of god-for-payment cheques have been victims. They have said they deposited the money after Nepal assured them of benefit. Many deposited money in lure of 24 percent interest. They have been picketing H&B, the central bank and police offices in protest.

Source: The Kathmandu Post