Former Gorkha Dev Bank chief held

HIMALAYAN NEWS SERVICE

KATHMANDU: Nepal Police today nabbed former executive chairman of Gorkha Development Bank Dambar Bahadur Bomjan for misappropriating loans,causing the bank’s financial health to deteriorate. On Tuesday, the central bank sought police help to hunt for 16 persons, including Bomjan, under the Banking Offence and Punishment Act- 2008. Bomjan had been absconding since the central bank froze his passport and fixed assets for non-compliance with the interest of depositors and the financial institution in violation of existing law.

Bomjan had misused a loan of Rs 124.1 million issued to Abdul Kabadi Trading Pvt Ltd to pay back debts of real estate companies, individuals and employees. “He had also issued a loan of Rs 51.3 million - some 429 per cent higher than property

valuation to Madan and Gurung Housing, besides floating Rs 70 million loan to Krishi Premura Properties without collateral.

The central bank had declared the class ‘B’ financial institution problematic on March 25. By then, its NPA – an indicator that measures a financial institution’s soundness – stood at 17 per cent. Financial irregularities came to light after a borrower

accused Bomjan and other officials of embezzling his funds in January. A probe revealed more shadier lending. Poor governance had deteriorated its financial health, compelling the central bank to take stringent measures. The central bank froze all

the assets of Bomjan and directors Nirmal Gurung, Dhan Prasad Rai, Dinesh Shakya, Mina Shrestha, Sanjeev Kumar Mishra, Mahesh Prasad Rijal, Ramesh Tamang, general manager Rajendra Das Shrestha, Deepak Rana, former director Prabeen Naulakha, Nepal Mentha Product Ltd MD Rakesh Adukiya, loanees Sajeev Kumar Agrawal, Jeevan Ghimire, Ruchi Jajodiya and Punam Khetan and sought police help to nab them. The passports of former executive chair of Nepal Share Market and Finance Company Yogendra Prasad Shrestha and his wife Gita Shrestha have been frozen; as also Saurav Shrestha’s accounts. They are still at large.