KATHMANDU, MAY 15
The Supreme Court on Friday ordered the release of Nepal Investment Mega Bank CEO Jyoti Prakash Pandey on personal recognisance, ruling that there were no grounds to keep him in custody during the investigation.
A bench of Justices Saranga Subedi and Shanti Singh Thapa, hearing a habeas corpus writ filed by Pandey's wife Niru Dahal, directed that the probe continue in the presence of a senior advocate, with Pandey barred from travelling abroad without prior court approval.
Pandey was arrested on May 13 by the Central Investigation Bureau (CIB) of Nepal Police.
The CIB accused Pandey of exploiting his position as head of the bank's Loan Recovery Committee to conduct a fraudulent auction of assets belonging to Smart Telecom Pvt Ltd, a company whose licence had lapsed and been cancelled by the Nepal Telecommunications Authority, with the intent of defrauding the state. The bank had separately issued an auction notice in Ashoj 2082, demanding a lump-sum payment of Rs 40 crore including outstanding rent and electricity dues, which the CIB said constituted fraud and criminal breach of trust under the Criminal Code, 2074.
Following the arrest, four banking and financial sector associations, the Nepal Bankers' Association, Development Bankers' Association Nepal, Nepal Financial Institutions Association and Nepal Microfinance Bankers' Association, had jointly urged authorities not to detain the CEO, arguing that loan recovery is a core function protected under Section 57 of the Bank and Financial Institutions Act, 2073, and that the arrest risked undermining public confidence in the banking sector.
