Adhikari, also the managing director of Kathmandu College of Management, was blacklisted by the CIB on July 29 for defaulting on loan of around Rs 70 million acquired in the name of Synergy Property Developer from Nabil Bank. [break]
Although his name no longer appears in the list - because he has since cleared the debt - the Bank and Financial Institution Act does not allow any blacklisted person to assume post of board director of any bank or financial institution for at least three years from the day the person´s name is withdrawn from the list.
However, documents obtained by Republica show that Adhikari was signing minutes of the board meetings of the bank in the capacity of the director till September 6, despite being blacklisted on July 29.
He relinquished his post only after Nepal Rastra Bank (NBR) fined him Rs 500,000 and banned him from assuming the post of director in any bank or financial institution for at least five years after finding him guilty of causing financial losses to the bank while auctioning off a land pledged as collateral by a loan defaulter.
Republica´s attempts to contact Adhikari failed as his cell phone was switched off throughout Monday evening.
High-ranking NRB officials said Adhikari´s act goes against the rules set by the banking sector regulator and necessary action will be taken against him if found guilty.
Documents obtained by Republica show that Adhikari had signed the minute of the 209th board meeting of the bank held on August 27 to welcome the newly appointed board director Mukunda Nath Dhungel and introduce Bangladeshi board director Mohammad Lutfar Raham and newly appointed chairman Shambhu Sharan Prasad Kayastha.
Adhikari has also signed the minute of 212th board meeting of the bank held on September 6 during which Kayastha was relieved from the duty for giving an interview to a business tabloid, ´Ajako Arthatantra´, which the board claimed damaged the bank´s reputation.
But what is surprising is that the bank, which should keep separate records of every meeting, knowingly buried the decisions of September 6 meeting and called another 212th meeting on October 9. Even more surprising news is that the minute of the meeting held that day has named Kayastha as the chairman, who on September 6 was discharged from his duty.
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