Patan Appellate Court has – after three years – convicted the then executive chairman of Gurkha Development Bank DB Bamjan, former board member Dhan Prasad Rai and debtors Suraj Bahadur Dahal, Prabin Naulakha, Gyanendra Bahadur Thapa and Madan Gurung and collateral valuator Rajendra Pakhrin on charges of banking offence.

The Court slapped Rs 11.62 million fine and jail term on DB Bamjan, Rai Rajendra Prasad Chhetri and Gurung for their involvement in approving loan worth Rs 69.5 million to Madan and Gurung Housing by overvaluing the collateral.

According to the Court, the four will have to pay Rs 2.9 million each, while remaining Rs 53.6 million will have to be paid by the borrower housing company.

Three years ago, the central bank and the Finance Ministry had jointly filed the cases.

The Court has also slapped 18-month jail term and fine of Rs 1.45 million to Karna Bahadur Thapa and Dipak Rana Magar for recommending the loan.

Likewise, the Court has slapped three-year jail term to Naulakha, who has also been ordered to pay Rs 75.1 million compensation to the bank.

The Court also passed another verdict in loan extension case to Ura Housing.

Bomjon was slapped three-year jail term to Gyanendra Bahadur Thapa, Dhan Prasad Rai, Rajendra Das Shrestha and Gyanendra Bahadur Thapa. They have also been ordered to pay Rs 13 million compensation to the bank.

The division bench of Thir Bahadur Karki and Hari Prasad Bagale issued the verdict on different cases related to banking offences involving former bank officials, staff and debtors for misappropriating Rs 1.62 billion while floating loans.

However, the Court nullified seven cases – out of the 20 cases related to the bank – citing the lack of evidences against the accused.

The Court, however, acquitted bank’s former board members Nirmal Gurung and Sanjiv Agrawal. Likewise, other accused Rakesh Akudiya, Punam Khetan, Mahesh Prasad Rijal, Shyam Dangol, Indra Lal Lama and Panchalal Maharjan also got the clean-chit.

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