Sunday, October 7, 2012

CIB nabs ex-director trio of Nepal Sri Lanka Merchant Bank and Finance


Police yesterday arrested three former directors of Nepal Sri Lanka Merchant Bank and Finance – that has already been merged with Nepal Bangladesh Bank – for financial indiscipline in the finance company.
They have caused some Rs 353.1 million loss to the company by flouting central bank directives while disbursing loans at a time when the finance company was about to merge with Nepal Bangladesh Bank.
The Central Investigation Bureau (CIB) of Nepal Police has nabbed the finance company’s former executive chairman Rubi Joshi and former directors Sri Ram Prasad Lamichhane and Gaurishankar Chaudhary.
DSP Umesh Raj Joshi said that Patan Appellate Court today allowed the Metropolitan Police Range, Hanuman Dhoka to keep them in police custody for additional 10 days for further investigation into their alleged financial crime.
The central bank had asked the police to arrest the trio on October 1.
Promoted by NB Group, the finance company was merged with Nepal Bangladesh Bank in 2011.
Police said the finance company’s top management lent without any collateral except personal guarantee and the loans were defaulted.
Promoter NB Group has breached the Bank and Financial Institution Act and kept their shares as collateral to borrow from their own finance company, inflicting a huge loss to the financial institution.

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