Fraud-accused finance co's promoter held

KATHMANDU, Jan 1: The Central Investigation Bureau (CIB) has arrested Ranjip Bhasu, promoter of the now-defunct Public Finance Cooperative, for involvement in a fraud worth Rs 20.06 million. Bhasu was at large since August 2005, when Kathmandu District Court found him guilty and slapped a fine of Rs 1.34 million and one-year prison term on him.



The CIB had earlier arrested Sarita Shrestha, Ram Narayan Pradhan, Roshan Shrestha, Pratap KC and Radesh Kumar Pradhan, for involvement in the fraud.[break]



According to CIB, Public Finance Cooperative, established around 14 years ago, was collecting deposits by offering higher rates and pledging gifts like gold coins to depositors. But in August 2003, promoters of the cooperatives fled by taking away Rs 20.06 million deposited by customers.



The company is said to have extended loans without adequate security and created fake borrowers. It had also violated the company norms by investing over 4.6 million in a movie named “Ajambari Maya”.

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