NIDC CEO arrested for financial crime
Central Bureau of Investigation ( CIB ) of Nepal Police on Friday arrested Shivaji Ray Yadav, chief executive officer of NIDC Development Bank, on charge of financial crime when he was director at NIDC Capital Market. NIDC Capital Market was established at the initiative of NIDC Development Bank in partnership with other financial institutions and companies.
Police said Yadav was arrested from his office in Durbarmarg, Kathmandu. Yadav has been arrested at a time when NIDC Development Bank has announced vacancy for the CEO’s post. Yadav’s term has been completed but, but the government authorised him to continue until a CEO is appointed.
Police said their investigation found Yadav’s involvement in the embezzlement of the company’ resources while providing loans to certain borrowers. Yadav has been found involved in abusing his authority while sanctioning loans more than the authorised amount, misusing the company’s funds and loans in collusion with borrowers, overvaulting collaterals to disburse more loans, and helping in misuse of loans without spending in proposed projects, according to the police. Earlier, the police had arrested former NIDC Capital Market CEO Khum Bahadur Hira Singh Rana, credit department chief Mina Shrestha, collateral valuator Pramod Bahadur Thapa and borrower Ratna Kumar Gautam in the same case. “Based on the arrestees’ statements and our investigation, Yadav was also found involved in decision making,” said SP Ishwor Babu Karki.
Meanwhile on Friday, the police also arrested two chartered accountants—Jagadish Agrawal, proprietor of Santos and Company, and Gopal Agrawal, proprietor of GK Agrawal and Company—for their alleged involvement in a scam at Everest Insurance.
Police said in a press release their involvement came to light while probing the company’s CEO Kewal Krishna Shrestha who has been charged with embezzling Rs 250 million.
The Agrawal duo have been accused of misconduct while auditing the company’s balance sheets for fiscal years 2008-09, 2009-10, 2010-11 and 2011-12, according to police.
