According to sources in the police department, a special investigation has been initiated to hunt down Shrestha. The police department is expecting necessary cooperation from the Indian authorities. [break]
Central Investigation Bureau (CIB), the elite crime investigation body of Nepal Police, is handling the case. "Shrestha is still trying to outwit investigators by threatening the promoters of NSMF," said police officials, who also added that those receiving such threats initially did not want to complain to the police.
Shrestha had fled ostensibly to India immediately after Nepal Rastra Bank (NRB) initiated action against him. NRB had ousted him from NSMF as per Bank and Financial Investigation Act and frozen his accounts and property following his refusal to show the central bank´s inspection team documents concerning various loans.
"He ran away after NRB decided to hand over the case to Nepal Police," said officials.
NSMF, a category D financial institution which has already raised its paid-up capital to Rs 2 billion and completed other formalities with an eye to upgrading itself to a commercial bank, has huge deposits of Nepal Army, Rastriya Beema Sansthan and Citizen´s Investment Fund totaling Rs 690 million.
Shrestha, in the capacity of chairman, was involved in irregularities and use of deposits for personal purposes. Nepal Police has also implicated Shrestha´s wife Geeta, a promoter of Macchapuchhre Bank, and their elder son and frozen all of their properties and accounts.
Shrestha also owns one Star Holding Company that has built a swanky business complex named Star Mall at Putalisadk.
The Central Investigation Bureau is preparing to file case against Shrestha as per Bank Offence (Punishment) Act 2064 BS. If convicted he could face 3-5 years jail and fine equal to the embezzled amount.
The case could also open the way for two other accusations against him as per Corruption Control Act 2059 BS and Commission for Investigation of Abuse of Authority (CIAA) Act 2048 BS.
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