Central Investigation Bureau (CIB) nabbed Singh and Amatya from their houses in the capital acting on an instruction from Nepal Rastra Bank (NRB) to litigate them as per Banking Offence Act (BOA). Singh is allegedly the kingpin behind a UDB financial scam worth RS 270.62 million. [break]
According to Deputy Superintendent of Police (DSP) Bhupendra Khatri who is in charge of investigations into the scandal, the defrauded sum includes separate amounts misappropriated in different ways like unjustified advances and the endorsement of fake loans. He is even alleged to have flouted the NRB directives to recover loans sanctioned by him.
Among allegations brought against Singh by NRB are that he fabricated shares under his ownership and that he shifted RS 24 million from an account of UDB in Annapurna Development Bank Limited Hetauda to that of a person using his single signature.
In case of irregularities by financial institutions, the BOA has provisions to recover the embezzled amount from the defendant´s properties and to sentence him or her to a maximum of five years´ jail term.
According to details that NRB has provided to the CIB, Amatya had misappropriated Rs 60.75 million by spending the amount deposited with UDB in the form of ´Call in Advance´ without registering the transaction in its ´Book of Account´.
The crackdown comes close on the heels of NRB adopting a tough posture against financial institutes allegedly involved in embezzling public deposits. NRB has written to the Nepal Police to detain 16 persons related to Nepal Share Markets and Finance (NSMF), SamJhana Finance and Gurkha Development Bank whose executive chairman DB Bomjan is the only one arrested so far. Most of the absconding accused are believed to have sneaked into India.
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