Thursday, December 29, 2011

Former bankers arrested for misappropriating Rs 600 million

The Central Investigation Bureau (CIB) of Nepal Police on Thursday arrested two former bankers for misappropriating tens of millions of rupees deposited by the clients of the banks they worked for.
The bank fraudsters slipping into the CIB net are Shivaram Joshi (53) of Kathmandu and Shambhu Bahadur KC (53) of Kabhre, respectively. They were arrested from their separate hide-outs in the Capital and were on the run since the Nepal Rastra Bank implicated the duo as per the Banking Offences and Punishment Act.
DIG Upendra Kant Aryal, the CIB chief, said the central bank had pressed Joshi and KC with multiple fraud charges.
KC was the executive chairman of Nepal Progressive Finance while Joshi was the managing director of Capital Merchant Banking & Finance Ltd. Karki is also a son-in-law of KC.
"Joshi in collusion with KC has misused deposits to the tune of Rs 600 million by creating fake borrowers and siphoning off hefty sum in their respective organisations for easy monetary gain," he informed.
According to CIB, Joshi used to find fake borrowers and collect deposits from section office of Capital Merchant Rina Tandukar at the behest of its founding chief Pawan Kumar Karki and submit the sum to KC for his individual purpose like land procurement and operation of his office, Nepal Progressive Finance.
KC was also found to have bought around 307 ropani in various places of the Kathmandu Valley by misusing the bank deposits over years. CIB said the land fetches more than Rs 1.29 billion now. Karki is still at large.
Joshi and KC have been handed over to Metropolitan Police Range, Hanumandhoka to proceed with charge.Earlier in September, CIB had arrested former executive chairman of Nepal Share Market and Finance Yogendra Prasad Shrestha for embezzling Rs 2.66 billion, the biggest fraud in the banking history of Nepal.

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