The stay order was issued by a single bench of officiating Chief Justice Damodar Prasad Sharma hours after the IB, the insurance sector regulator, took a decision to relieve Aryal from his job.[break]
Although IB´s decision to sack Aryal came prior to issuance of stay order, the Supreme Court´s ruling will supersede the one made by the insurance sector regulator as the apex court on Wednesday also instructed the IB not to implement any decision made after June 11.
“The court has summoned both the IB and Aryal after a week´s time during which hearings on whether sacking of Aryal should be upheld would be held,” Supreme Court Spokesperson Sri Kanta Poudel told Republica.
The IB earlier on Wednesday had sacked its executive director, Binod Aryal, to put to rest scandals of fraud, policy corruption and abuse of position at the insurance sector regulator.
At a press conference held on Wednesday morning, the IB had said Aryal was removed from the post after he was found guilty on multiple counts of misconduct.
“Acts committed by Aryal violated provisions in the Employees Regulation, which made him unfit for the post,” IB Spokesperson Raj Kumar Aryal had told the press conference.
During investigations launched by the IB, Binod was found guilty of hiding his affiliation with companies that he promoted while applying for the post of IB´s executive director.
“Investigations showed that Binod Aryal was promoting Aryal Construction Trading & Consultancy and Bristi Tours & Travels before and after assuming the post of executive director at the IB,” Raj Kumar said. This act breached terms and conditions of the executive director selection process, which had clearly mentioned that promoters, office-bearers and employees of any firm are not eligible to file candidacy for the post.
“Binod Aryal also kept the IB in dark about his private business affairs, which went against the Employees Regulation,” Raj Kumar said. “Besides, he also made a policy change while serving the IB in the capacity of board director, which directly benefited his company Aryal Construction, while causing loss to the Insurance Pool, an undertaking of the government.”
Binod, who entered the IB as a board member prior to assuming the post of executive director in February 2012, was known as a tough implementer of insurance laws and played a lead role in introducing long-overdue reforms in the insurance sector.
But he fell in hot water after series of complaints were filed against him, which prompted the Ministry of Finance to instruct the IB to launch an investigation against him.
During the investigation, Binod was also found involved in demanding compensation for total loss of a jet ski -- owned by a company promoted by him -- by purchasing insurance policy after occurrence of the accident, which is illegal. It is said Aryal also used influence to alter the cause of accident from “drowning in the Koshi River” to “fire”.
After these misconducts were confirmed, the IB gave a week´s time to Binod to explain why the insurance sector regulator should not take action against him. After his explanation was deemed “unsatisfactory”, the IB then gave him three day´s time to clarify why the IB should not remove him from his post.
“But Binod Aryal did not submit his clarification till the deadline of Tuesday evening, following which the Board decided to take departmental action against him and remove him from his post,” Raj Kumar said.
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