Police have arrested former chief executive officer and director of H&B Development Bank on charges of fraud.
A team deployed from the Metropolitan Police Crime Division arrested the bank’s ex-CEO Jasoda Sainju, 50, and former director Pushpajyoti Dhungana, 40, for investigation into allegations that the bank had swindled Rs 47.7 million from the account of one of its clients, according to SP Bhupal Bhandari of MPCD.
Police arrested the duo after involvement of the bank officials, during preliminary investigation carried out by the MPCD, was suspected. The MPCD had started investigation into the case following a complaint lodged by Prashant Agrawal, the proprietor of the New Asia Pacific Traders Pvt Ltd that the amount from the account in the name of his company was withdrawn and embezzled from the Kuleshwor branch of the bank.
Sainju, a resident of Koteshwor was nabbed yesterday while Dhungana, who hails from Lekhnath-4, Kaski district and currently residing at Jhamshikhel, Lalitpur, was detained today, according to SP Bhandari.
MPCD today handed them over to the Metropolitan Police Range Hanumandhoka for further investigation.
Earlier on May 28, Nepal Rastra Bank had suspended the then CEO Sainju, as the class ‘B’ financial institution failed to improve its financial health despite repeated instructions.
The bank was reeling under financial problems since December 2012 when a fake good-for-payment cheque scandal broke out due to weak internal control system. This caused the bank to lose at least Rs 426.18 million.
The scam at H&B came to the fore after Niraj Nepal, bank’s Kuleshwor branch manager, colluded with a few other people and extended them fake good-for-payment cheques, without locking adequate amount in their accounts.
The entire H&B Development Bank episode transpired after some fraudsters lured ‘the victims’ into transferring the money to their accounts pledging them high interest rates.
Based on the transferred amount, one of the bank branch managers then had issued good-for-payment cheques.
As per common banking practice, the amount equivalent to the mentioned amount in the good-for-payment cheque has to be kept idle in the account as financial security. But instead of locking the amount, the manager, who had colluded with fraudsters, had released the money, allowing the fraudsters to flee with millions of rupees.
source: the himalayan times,9 oct 2014
LINK
A team deployed from the Metropolitan Police Crime Division arrested the bank’s ex-CEO Jasoda Sainju, 50, and former director Pushpajyoti Dhungana, 40, for investigation into allegations that the bank had swindled Rs 47.7 million from the account of one of its clients, according to SP Bhupal Bhandari of MPCD.
Police arrested the duo after involvement of the bank officials, during preliminary investigation carried out by the MPCD, was suspected. The MPCD had started investigation into the case following a complaint lodged by Prashant Agrawal, the proprietor of the New Asia Pacific Traders Pvt Ltd that the amount from the account in the name of his company was withdrawn and embezzled from the Kuleshwor branch of the bank.
Sainju, a resident of Koteshwor was nabbed yesterday while Dhungana, who hails from Lekhnath-4, Kaski district and currently residing at Jhamshikhel, Lalitpur, was detained today, according to SP Bhandari.
MPCD today handed them over to the Metropolitan Police Range Hanumandhoka for further investigation.
Earlier on May 28, Nepal Rastra Bank had suspended the then CEO Sainju, as the class ‘B’ financial institution failed to improve its financial health despite repeated instructions.
The bank was reeling under financial problems since December 2012 when a fake good-for-payment cheque scandal broke out due to weak internal control system. This caused the bank to lose at least Rs 426.18 million.
The scam at H&B came to the fore after Niraj Nepal, bank’s Kuleshwor branch manager, colluded with a few other people and extended them fake good-for-payment cheques, without locking adequate amount in their accounts.
The entire H&B Development Bank episode transpired after some fraudsters lured ‘the victims’ into transferring the money to their accounts pledging them high interest rates.
Based on the transferred amount, one of the bank branch managers then had issued good-for-payment cheques.
As per common banking practice, the amount equivalent to the mentioned amount in the good-for-payment cheque has to be kept idle in the account as financial security. But instead of locking the amount, the manager, who had colluded with fraudsters, had released the money, allowing the fraudsters to flee with millions of rupees.
source: the himalayan times,9 oct 2014
LINK
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