KATHMANDU, Feb 19: The Central Investigation Bureau (CIB) of Nepal Police has arrested eight operators of investment companies on the charge of committing banking fraud and charging exorbitant interests -- over 24 percent -- on loans.
A joint team of the CIB and the Regional Investigation Team of Province 1 on Sunday arrested eight operators of five investment companies in Sunsari and Morang districts after they were found collecting around Rs 100 million from the public without seeking permission from Nepal Rastra Bank and the Department of Cooperatives. They were also found providing loans at over 24 percent to service seekers, according to a press statement issued by the CIB on Monday.
The CIB has arrested Bhim Prasad Chaudhary and Shyam Pheskara Tharu of Aapan Investment Pvt Ltd in Itahari; Chandra Bahadur BK and Aanita BK of Halesi Investment Pvt Ltd in Dharan; Raju Sah of Chautari Investment Pvt Ltd in Biratnagar; Sunil Guragain of N Investment Pvt Ltd in Itahari; and Dilli Prasad Acharya and Prakash Acharya of Nuntang Investment Pvt Ltd in Itahari. The CIB has also confiscated all the documents of the companies.
The CIB investigation revealed that the arrested operators had managed to illegally collect almost Rs 100 million from depositors by offering higher interest rates than the cooperatives.
The CIB has initiated further investigation against them under the Banks and Financial Institutions Act (BAFIA).