RBB loan default: Spl Court convicts
- Maganturam Group promoters, bank officials
The Special Court on Thursday ruled one-year jail term for promoters of the Maganturam Group for not repaying loans of Rastriya Banijya Bank (RBB). They had taken loans from the bank’s Biratnagar branch without putting up adequate collateral.
Confirming that they caused a huge loss to the bank, the court told them to repay Rs 1.37 billion to the bank—the bank’s total loss. The court also slapped six-month jail term on RBB officials who were involved in the scam.
Those convicted are Subodh Kumar Agrawal, Suresh Kumar Agrawal, Krishna Kumar Agrawal, Narayan Agrawal, Damodar Agrawal and Mangaturam Agrawal of the Mangaturam Group and RBB’s immediate managers Radha Prasad Shah, Shivacharan Mandal, Chandralal Amatya and Bhairav Prasad Pokharel.
The court, however, gave impunity to defendants including RBB’s immediate assistant officers Birenda Lal Chhote and Shyam Kumar Shrestha, stating that there was no adequate evidence against them.
The court said the borrowers received loans beyond the approved limit of credit, took excessive loan by putting up inadequate collateral, took new loans without paying old ones, were involved in loan transactions without following due procedures and used the loans for purposes other than specified in violation of the loan agreement.
The bank and the loanees had agreed to make the loan repayment flexible in 2003. But the court made it clear that the loanees could not get impunity for misappropriating loans taken before 2003. “Therefore, the defendants are confirmed to have committed offence as per the provision 8 (4) of the Corruption Control Act-2002.”
The court said RBB’s immediate employees, including Shah, Mandal, Amatya and Pokharel, caused loss to the bank and benefited the loanee group illegally by providing loans beyond the approved limit and without adequate collateral.
The court ruled that Shah and Amatya committed offence as per the provision 7 (2) of Corruption Control Act-1960 and Mandal and Pokharel as per the provision 8 (3) of the Corruption Control Act-2002.
The joint bench of court’s chairman Gauri Bahadur Karki and justices Om Prakas Mishra and Kedar Prasad Chalise issued the verdict.
Posted on: 2011-04-22 09:49
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