CIB arrests banking fraud Yogendra Shrestha

The Central Investigation Bureau (CIB) of Nepal Police today nabbed former executive chairman of Nepal Share Market and Finance Yogendra Prasad Shrestha for embezzlement of Rs 2.66 billion, the biggest fraud in the banking history of Nepal.
Shrestha was arrested in Mahendranagar of Kanchanpur, said CIB Director DIG Uprendra Kant Aryal today at a press meet at the CIB office in Kathmandu.
Shrestha (55) of Watu, Kathmandu- 24, was absconding ever since Nepal Police issued arrest warrant against him on banking offence charge at the behest of Nepal Rastra Bank on April 5.
"CIB officers arrested him in downtown Mahendranagar," Aryal said, adding that Shrestha had sanctioned a loan of Rs 1.57 billion to 88 persons without any supporting documents and collateral.
The investigation of Financial Information Unit (FIU) under the central bank and police has revealed that he had embezzled deposits of his clients and used the money in the promoters' share. "Shrestha had misused the deposits to serve his personal gains," said Aryal.
Similarly, Shrestha has sanctioned loans to the promoters of the company voilating the Banking and Financial Institutions Act (Bafia).
According to CIB, he embezzled a total of Rs 2.66 billion, including illegal loan of Rs 1.57 billion, misuse of deposits worth Rs 885.95 million and Rs 204.98 million loans sanctioned to promoters. "The sum of the money he has embezzled is likely to increase, after the final investigation," Aryal added.
Shrestha will also have to pay fine under on the basis of the claimed amount after recovering it and an imprisonment of up to five years.
DIG Aryal also informed that CIB has been investigating four separate cases worth Rs 5.11 billion in connection with banking offences.
Meanwhile, CIB has declared his wife Gita Shrestha (53) and his son Shaurav Shrestha (28) including another promoter fugitive.
During the press meet, Shrestha, however, refused to take responsibility of all the amount. “I may have embezzled some part of the total amount claimed by the CIB and central bank but not the whole," he said, asking the police to investigate on other promoters to find out the truth.
According to Dhangadi correspondent a team of CIB had arrested Shrestha, from New Delhi-based apartment of his sons on Tuesday. A police source in Kanchanpur said that Yogendra was hiding at the rented apartment of his sons in New Delhi. His sons are studying in New Delhi. It is learnt that Indian police had nabbed Shrestha handed him over to CIB in New Delhi on Tuesday.
Kanchanpur Police said that Shrestha, who was brought to Kanchanpur via Gaddacahuki border, has been sent to the capital. Police had put Yogendra on the most wanted list for embezzlement of billions of rupees deposited by people and floating loans without following legal procedure. But with his arrest the public might gain confidence on banks and financial institutions again as lately their confidence on banks and financial institutions have been wanning due to some people like Shrestha.
The government had seized his passport suspecting that he might leave the country. The government had also sought Interpol's help for his arrest.
After his arrest the banks that have lent him interbank lending are also hopeful of getting their amount back. Shrestha had pocketed the interbank borrowing of Rs 200 million from at least two commercial banks – without showing the it in the finance company’s accounts.