•   Wednesday, 12 Jun, 2024

SC issues verdict on Rastriya Banijya Bank's Rs 1.37 billion loan embezzlement case

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KATHMANDU, Nov 30: The Supreme Court (SC) has issued the verdict on the corruption case involving the embezzlement of over Rs 1.25 billion in loans from Rastriya Banijya Bank. A joint bench of Justices Prakashman Singh Raut and Kumar Chudal delivered the final verdict on November 23, concluding a 12-year legal process.

The case dates back to the year 2060 BS. The SC upheld the decision of the Special Court, which had originally ruled on the matter. An appeal petition challenging the Special Court's decision was filed in the SC in the month of Shrawan (mid-July to mid-August), 2068 BS. The case revolves around the embezzlement of loans in Rastriya Banijya Bank's Rani Path Branch in Biratnagar, involving nine industries owned by the Mangaturam Group.

At that time, the Special Court had ordered the bank to recover an amount of Rs 1.37 billion.

On April 21, 2005, the Commission for the Investigation of Abuse of Authority (CIAA) registered a corruption case at the Special Court. The CIAA accused the bank's employees and industry officials of irregularities such as providing more loans against less collateral, repeatedly extending loans, exceeding approved loan limits, and re-approving loans for amounts beyond the sanctioned limit.

Among the employees of the bank, the then manager Radha Prasad Sah, Chandra Lal Amatya, bank employees Shiva Charan Mandal and Bhairab Prasad Pokharel were found guilty by the SC. All four are convicted and sentenced to six months imprisonment. Similarly, Subodh Kumar Agrawal, Suresh Kumar Agrawal, Krishna Kumar Agrawal, Narayan Agrawal, Damodar Agrawal and Mangaturam Agrawal have received up to one year imprisonment.

The bench of Special Court Chairperson Gauri Bahadur Karki and members Omprakash Mishra and Kedar Prasad Chalise had initially delivered the verdict on the case on April 21, 2011.


Source: myRepublica
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