Four held for banking fraud

Kathmandu, June 29

The Central Investigation Bureau of Nepal Police have arrested three directors and former chief executive officer of Community Micro-finance Bittiya Sanstha Limited in Sanga, Kavre, for allegedly causing a loss of over Rs 25 million to a financial institution.

The suspects of banking offence are Hira Bishwakarma, 57, of Palpa; Chandeshwori Pradhan, 65, of Kathmandu; and Batukrishna Karki, 51, and Swayambhu Ram Joshi, 65, of Lalitpur. Bishwakarma is the chairperson of the board of directors while Pradhan and Karki are directors of the financial institution. Joshi is a former CEO.

Superintendent of Police Krishnahari Sharma said the directors and former CEO of the company had caused loss to the financial institution by floating cash in an unauthorised manner.

“Then CEO Joshi sanctioned an amount of Rs 25 million to his own organisation Women Empowerment Centre, Nepal, as ‘goodwill’ without obtaining approval of the authorised body,” he informed. Similarly, Joshi, in collusion with the directors, claimed payment of Rs 744,000 under the headings of remuneration and other facilities against the directive of Nepal Rastra Bank and prevailing laws.

According to CIB, the directors had appointed Joshi as CEO without taking into consideration the number of shares of the financial institution beyond the prescribed limit thereby flouting the directive of the regulatory body. Similarly, they were not found to be carrying out the financial transaction in a transparent way.

Patan High Court has remanded them to seven-day judicial custody for further investigation into the banking offence.