Nepal Bank loan defaulter nabbed

KATHMANDU, JUL 23 -

Police on Sunday arrested bank loan defaulter Mohan Sahani who had remained at large ever since the Special Court convicted him seven years ago.

On October 30, 2005, the Special Court had slapped him with a fine of Rs105.05 million for defaulting loans of Nepal Bank Limited. He caused losses worth Rs 190 million to the bank.

A team of the Central Investigation Bureau (CIB) of Police arrested Sahani from Tripureshwor, Kathmandu, and produced him before the Kathmandu District Court.

Sahani, 56, a permanent resident of Nepalgunj Municipality-5, had taken loans from NBL in the names of his firms, including Sahani Suppliers, Saroj Wood Industries, Saroj Furniture, Kanti Khadya Udyog, A One and Suppliers, Fair Deal International, Uma Maheshwor Hardware, West Way Centre, A Sell International, T&T Industries, Saibaba Bidha Garments, Gorakhkali Garments Industries, Bauddha Recondition Enterprise, Universal Apparels and Kanchan Trade Concern.

According to a Nepal Police press release, collaterals these firms had put up to get the loans were of inferior quality such as land on river banks and the collaterals were overvalued. Most of his firms were opened just for taking loans as they were not found to be in operation after registration.

Source: The Kathmandu Post