Fraud of 120 million in Manjushree finance, CEO flee while borrower arrested

Kathmandu January 21- Manjushree Finance having its head office in New Baneshwor has papered for banking fraud of Rs. 120 million. Central Investment Bureau, CIB has arrested Ransharan Bhandari, one of the borrowers of the loan that has been issued without any collateral, in this regard while the former CEO Nawaraj Thapa who provided the loan is in run.

Loan without collateral to nine debtors

CIB has confirmed that former CEO Thapa had provided loans amounted to Rs. 120 million to nine debtors including Ramsharan Bhandari without collateral. After NRB discovered about collateral less loan, borrowers had kept inferior collateral due to the which, loan could not be recovered yet.  Despite the merger agreement with Lumbini bank two years ago, finance has not concluded the merger process till date.

CEO flees after resignation in the fear of action

CEO Thapa resigned from the post reasoning aboard studies after NRB started investigation last year. According to an employee, he fled in the fear of action being taken against him. Most of the debtors are also out of touch with the finance.

Bhandari acknowledged irregularities

Bhandari who was arrested two weeks ago has acknowledged irregularities. He took Rs. 24.5 million loans in two installments. He repaid Rs. 11.4 million loan after police investigation.

Troublesome finance while NRB relaxed

NRB was well-aware of irregularities in Manjushree finance three years ago. NRB instructed to reimburse loan from collateral without taking action against the CEO and borrowers, which led the finance in problem. After finance got in major problem due to the scam, NRB recommended CIB investigation in order to take action against the CEO and borrowers.