Banking fraud claims touch Rs 9.71 billion
Increasing financial institutions has also given rise to banking frauds lately.
The government’s claims in banking fraud cases under the court touched Rs 9.71 billion, according to the commercial bench of Patan Appellate Court.
There are 104 cases involving banking offense and fraudsters which are currently sub judice, it informed, adding that the appellate court had settled 63 cases including Gorkha Development Bank, Samjhana Finance and Capital Merchant Banking and Finance – with a claim of Rs 5.13 billion – of banking fraud in the last fiscal year 2013-14.
Central bank has filed two cases against Nepal Share Market and Finance claiming Rs 2.51 billion. The central bank has sued Nepal Share Market and Finance’s 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 Rs 2.66 billion.
The central bank has taken over Nepal Share Market and Finance after it was declared crisis-ridden in February.
The central bank has also flied another case against Niraj Nepal and four others – accusing them of committing banking fraud in H&B Development Bank’s good-for-payment checks scam worth Rs 1.09 billion – with Rs 1.68 billion claims in three cases.
Likewise, the central bank has also filed two cases against Kist Bank with Rs 8 million claim. It has filed cases against Rohit Lal Shrestha and eight others on illegal withdrawal of money from the bank’s Thamel branch. The central bank has claimed Rs 151.69 million accusing them of extending loans against sub-standard collateral.
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 along with 167 others (Rs 532.29 million) are some of the high profile cases under the court.