KATHMANDU, March 25: The Supreme Court on Sunday refused to free Kamal Gyawali, the then chief of Kist Bank, who has been serving a jail sentence after being convicted of banking fraud. A division bench of justices Kedar Prasad Chalise and Dambar Bahadur Shahi handed down the verdict stating that Gyawali could not be released, following hearings on Sunday on a case filed by Gyawali.
The apex court rejected his plea to release him through a habeas corpus order even though he claimed that he has been detained illegally as he was convicted by the Patan High Court and still he was supposed to file an appeal at the Supreme Court. Gyawali has been serving a four-year jail sentence according to the decision of the Patan High Court which also imposed a fine of Rs 42.7 million on him for bank fraud.
Stating that he had surrendered before the court respecting the verdict but sending him to jail when he still has the right to file an appeal against the judgment at the Supreme Court was illegal. Gyawali was convicted for releasing millions of rupees in the name of Jamko Prakashan illegally by exercising his power for which he was prosecuted at the High Court Patan. Along with him, borrowers Kishor Dhakal and Devaki Bastakoti and evaluator Komananda Adhikary were also convicted. They had formed a nexus for releasing millions of rupees with the security of a low quality land through overvaluation.