Kathmandu, November 24

The Supreme Court (SC) today ordered Nepal Police to release former chief executive officer of Bank of Kathmandu (BoK) Ajaya Shrestha on bail of Rs 10 million.

The double bench of SC Justices Sapana Pradhan Malla and Kumar Regmi ordered the release of banker Shrestha scrapping the order of Patan High Court to keep Shrestha in police custody. Kishor Poudel, media expert at the Supreme Court, informed that Shrestha will be released after the bail amount has been deposited. Shrestha had registered a writ against the decision of Patan High Court at the SC.

On September 22, Nepal Police had arrested Shrestha and 10 others in a banking offence case worth millions of rupees. The Central Investigation Bureau (CIB) of Nepal Police had arrested five bankers of BoK and six others over BoK issuing loans based on fake collateral and forged documents produced by loan applicants.

In 2015, Surendra Shrestha of Jhapa had acquired loan worth Rs 500 million from Bank of Kathmandu.

Later, when Shrestha did not pay back the loan the bank initiated an investigation. During the investigation, the bank found that the aforementioned loan amount was issued on the basis of fake land registration document. It was also found that the loan was issued on the basis of fake documents of land situated close to a river in Jhapa.

Consequently, BoK had registered a complaint at CIB.

The arrest of banker Shrestha, who is regarded as one of the most humble bankers in the banking community, was criticised by different quarters including the Nepal Bankers’ Association.