KATHMANDU, Jan 8: The police have arrested Prithvi Bahadur Shah of Achham for his alleged involvement in suspicious transactions.
Shah, who is believed to be a close aide of former finance minister Janardan Sharma, is accused of being involved in suspicious transactions worth Rs 650 million. Investigations have revealed that Shah was involved in suspicious transactions of Rs 650 million which basically involved duping foreigners.
A team of the Central Investigation Bureau of Nepal Police (CIB) arrested Shah along with six people for carrying out suspicious business in the name of dozens of companies including 'Hunting Reserve of Nepal Pvt Ltd'.
According to CIB’s SP Sanjay Singh Thapa, the accused contacted foreigners including American citizen Julia Hodges to renew their 'anti-virus' system, gained access to their computer and tricked them into releasing money on the pretext of renewal charge.
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They used tricks such as 'wire scan' to receive US$ 4.65 million (about Rs 615.2 million), Pound Sterling 12.8 million (about Rs 2.03 million) and Rs 32.23 million rupees through Swift code.
"We have arrested six people including Shah after they were found to have engaged in suspicious transactions by cheating foreigners," SP Thapa said, "They were found to have engaged in transactions without obtaining permission from the Government of Nepal."
Along with Shah, the police arrested Bijay Bikram Shah of Achham Bannigarhi-6, Chakra Bahadur Khatri of Jajarkot, Anup Khadka of Dolakha Khopachangu-2, Rukmangat Kafle of Nawalparasi Bardghat-4, Rang Bahadur Saud of Achham Darna-6 on the charge of suspicious transactions. The bureau has taken them into custody and obtained a remand order from the court for investigation.
SP Thapa said that Shah has been depositing the money obtained illegally in the bank accounts of various companies and individuals.
The CIB claims that the arrested Shah has been transferring illegal money in the name of various persons and organizations in a bid to hide the source of the money.
After the Nepal Rastra Bank (NRB) blocked millions of rupees coming from abroad in the name of Shah's company, the then finance minister Sharma pressured the central bank to release the money. There was widespread criticism after the finance minister ordered the money to be released while the Department of Money Laundering Investigation and the central bank were investigating the suspicion dealings of Shah.
After billions of rupees were received from the United States in the name of a company associated with Shah, the US government agency Financial Crimes Enforcement Network (FinCEN) sent a letter to NRB asking it to investigate and return the amount. The central bank then withheld the amount. The then Finance Minister Sharma gave a written instruction to release the amount, but the central bank officials decided to stick to their guns.
After it became public that the then Finance Minister Sharma had given undue pressure to the NRB, the Finance Ministry also published a statement in March last year saying that foreign investment should not be stopped.
Back then, Sharma argued that Shah had brought foreign direct investment. After his instructions to NRB came out in the media, Sharma initiated the process of dismissing Governor Maha Prasad Adhikari.
NRB Spokesperson Dr Gunakhar Bhatta said that the bank account in the name of Prithvi Bahadur Shah, which recorded suspicious transactions, is still suspended.
