Bhai Krishna Khadka, 45, a resident of Gaagalphedi-6, Kathmandu, one of the promoters of Capital Merchant Banking and Finance was convicted by the Patan Appellate Court for using his influence to get a loan of Rs 35 million issued from the bank for his company, Sandarvik Builders Pvt Ltd, on which he later defaulted, causing severe loss to the finance institution.
The court had slapped a prison term of three years and a fine of Rs 35 million on Khadka, who had been on the run since the court issued the verdict on May 2014.
Following his arrest on Wednesday, the Kathmandu District Court has sent Khadka to the Central Jail, Kathmandu as per the Banking Fraud and Punishment Act of 2044.
Last year, Patan Appellate Court issued verdicts against 61 people, including some staffer and debtors of Capital Merchant Banking and Finance, involved in what proved to be a systemic loan embezzlement amounting to a staggering Rs 61 billion.
The court had found the debtors and the staffer complicit in issuing huge loans against weak collateral.
The central bank, following an investigation, filed a case naming some of the staffer and debtors of the finance company as defendants.
Court had also directed 49 out of the 61 who were found guilty to pay combined fines amounting to the money embezzled and serve a jail term for 3 years.
In the last four months, the CIB has already arrested three persons involved in the case. Arun Kumar Maratha of New Baneswor, Nawaraj Khatri of Dhapashi and Tulasha Kumari Dhamala of Okhaldunga have been put behind bars.
Related story
Fraud-convict Kist Bank ex-CEO nabbed after two years on the la...
