Claims pertain to 104 sub judice cases
> 63 cases settled in FY 2013/14; claim amount Rs 5.13 billion
> Highest claim amount Rs 2.51 billion
> Most fraud cases related to collateral with false valuation
With banking-related offenses unabated in recent years, the government’s claims in cases related to banking fraud that are sub judice stand at Rs 9.71 billion.
According to figures from the commercial bench of Patan Appellate Court, the claims pertain to 104 cases involving banking offense and fraudsters which are currently sub judice.
The appellate court settled 63 cases related to banking fraud in fiscal year 2013/14 alone, and these involved a total claim of Rs 5.13 billion.
The highest claim amount is in two cases involving Nepal Share Market and Finance (NSM), in which Nepal Rastra Bank (NRB) -- the central bank -- has sued NSM former chairman Yogendra Prasad Shrestha and eight other officials, under the Nepal Rastra Bank Act, Bank and Financial Institutions Act and Banking Offense and Punishment Act, for misappropriating more than Rs 2 billion. The total claim amount in these cases stands at Rs 2.51 billion.
The crisis-ridden NSM was taken over by NRB in February as there were no signs of improvement in the situation at the finance company. NRB has filed case against Shrestha and others for allegedly embezzling depositors’ funds amounting to Rs 2.66 billion.
Likewise, another big claim amount is against Niraj Nepal and four others, who are accused of committing banking fraud in H&B Development Bank’s good-for-payment checks scam worth Rs 1.09 billion.
The total claim in the three cases involved is Rs 1.68 billion.
Apart from two cases related to Kist Bank, all the cases that are currently sub judice concern development banks and finance companies. While there is a claim of Rs 8 million in a case related to Kist Bank involving Rohit Lal Shrestha and eight others regarding illegal withdrawal of money from the bank’s Thamel branch, a total claim amount of Rs 151.69 million pertains to former Kist CEO Ban Narsingh Gharti along with 23 others, who are accused of extending loans against collateral of inferior quality.
According to Nripa Dhoj Niraula, registrar at Patan Appellate Court, most banking offense cases are related to misuse of credit by borrowers, banking officials providing loans in an unauthorized manner or through false valuation of collateral, and obtaining or issuing checks, checkbooks or bank statements in an unauthorized manner.
Similarly, among other cases that involve high claim amounts are of Raju Kumar Pradhan of General Finance along with 216 others (Rs 151.5 million), Dibya Kumar Shrestha of Crystal Finance along with 332 others (Rs 501 million), Rubi Joshi of Nepal Sri Lanka Merchant Banking and Finance along with 62 others (Rs 297.86 million), and Himalaya Bhakta Pradhananga of Himalaya Finance Ltd along with 167 others (Rs 532.29 million).
“Most of the banking fraud cases that we have found are related to dummy borrowers or fake projects for which loans are sanctioned while there are also cases where loans are provided against collateral that has been overvaluated,” NRB spokesperson Manmohan Kumar Shrestha told Republica. “The management, including the CEO, loan department officials and the board of directors, are directly or indirectly connected in most of banking offences.”
Meanwhile, the appellate court settled 63 major cases related to banking fraud last year. Cases related to Gorkha Development Bank, Samjhana Finance and Capital Merchant Banking and Finance Ltd, in which the government has claims of Rs 5.13 billion, were settled last year.
source:SAGAR GHIMIRE ,republica,10 sept 2014
LINK
> 63 cases settled in FY 2013/14; claim amount Rs 5.13 billion
> Highest claim amount Rs 2.51 billion
> Most fraud cases related to collateral with false valuation
With banking-related offenses unabated in recent years, the government’s claims in cases related to banking fraud that are sub judice stand at Rs 9.71 billion.
According to figures from the commercial bench of Patan Appellate Court, the claims pertain to 104 cases involving banking offense and fraudsters which are currently sub judice.
The appellate court settled 63 cases related to banking fraud in fiscal year 2013/14 alone, and these involved a total claim of Rs 5.13 billion.
The highest claim amount is in two cases involving Nepal Share Market and Finance (NSM), in which Nepal Rastra Bank (NRB) -- the central bank -- has sued NSM former chairman Yogendra Prasad Shrestha and eight other officials, under the Nepal Rastra Bank Act, Bank and Financial Institutions Act and Banking Offense and Punishment Act, for misappropriating more than Rs 2 billion. The total claim amount in these cases stands at Rs 2.51 billion.
The crisis-ridden NSM was taken over by NRB in February as there were no signs of improvement in the situation at the finance company. NRB has filed case against Shrestha and others for allegedly embezzling depositors’ funds amounting to Rs 2.66 billion.
Likewise, another big claim amount is against Niraj Nepal and four others, who are accused of committing banking fraud in H&B Development Bank’s good-for-payment checks scam worth Rs 1.09 billion.
The total claim in the three cases involved is Rs 1.68 billion.
Apart from two cases related to Kist Bank, all the cases that are currently sub judice concern development banks and finance companies. While there is a claim of Rs 8 million in a case related to Kist Bank involving Rohit Lal Shrestha and eight others regarding illegal withdrawal of money from the bank’s Thamel branch, a total claim amount of Rs 151.69 million pertains to former Kist CEO Ban Narsingh Gharti along with 23 others, who are accused of extending loans against collateral of inferior quality.
According to Nripa Dhoj Niraula, registrar at Patan Appellate Court, most banking offense cases are related to misuse of credit by borrowers, banking officials providing loans in an unauthorized manner or through false valuation of collateral, and obtaining or issuing checks, checkbooks or bank statements in an unauthorized manner.
Similarly, among other cases that involve high claim amounts are of Raju Kumar Pradhan of General Finance along with 216 others (Rs 151.5 million), Dibya Kumar Shrestha of Crystal Finance along with 332 others (Rs 501 million), Rubi Joshi of Nepal Sri Lanka Merchant Banking and Finance along with 62 others (Rs 297.86 million), and Himalaya Bhakta Pradhananga of Himalaya Finance Ltd along with 167 others (Rs 532.29 million).
“Most of the banking fraud cases that we have found are related to dummy borrowers or fake projects for which loans are sanctioned while there are also cases where loans are provided against collateral that has been overvaluated,” NRB spokesperson Manmohan Kumar Shrestha told Republica. “The management, including the CEO, loan department officials and the board of directors, are directly or indirectly connected in most of banking offences.”
Meanwhile, the appellate court settled 63 major cases related to banking fraud last year. Cases related to Gorkha Development Bank, Samjhana Finance and Capital Merchant Banking and Finance Ltd, in which the government has claims of Rs 5.13 billion, were settled last year.
source:SAGAR GHIMIRE ,republica,10 sept 2014
LINK
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