{"id":36224,"date":"2026-08-14T23:49:23","date_gmt":"2026-08-14T18:04:23","guid":{"rendered":"https:\/\/bankingsansar.com\/news\/36224\/"},"modified":"2026-08-15T19:35:08","modified_gmt":"2026-08-15T13:50:08","slug":"nimb-in-legal-crisis-all-board-members-absconding-ceo-suspended-if-we-choose-another-ceo-who-will-sign-the-contract-2","status":"publish","type":"post","link":"https:\/\/english.bankingsansar.com\/news\/36224\/","title":{"rendered":"NIMB in Legal Crisis: All Board members abscond, CEO suspended, who will sign the next CEO?\u00a0"},"content":{"rendered":"

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Kathmandu. Jyoti Prakash Pandey, CEO of Nepal Investment Mega Bank, should have been suspended on the same day the case was filed against him on the charge of fraud, organized crime and banking offense. However, the bank’s website still says that he is the CEO. <\/div>\n<\/p>\n

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The bank is trying to make a statement that Pandey can become CEO until the criminal case is proved. He is trying to make such a commentary by showing Bafia. However, the bank’s employee bylaws say that Pandey will automatically be suspended until the case is resolved. <\/div>\n<\/p>\n

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Nepal Investment Mega Bank, CEO suspended in legal crisis<\/div>\n<\/p>\n

Officials of Nepal Rastra Bank (NRB) are clear that Jyoti Prakash Pandey has been suspended.<\/p>\n

The Employees Bye-laws of Nepal Investment Mega Bank also clearly state that employees will be suspended when a criminal case is registered. The Nepal Rastra Bank (NRB) has approved the by-laws. <\/div>\n<\/p>\n

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This means that the NRB should have to stand in favour of Jyoti Prakash Pandey by changing the bylaws overnight, otherwise the NRB should not be allowed to remain the CEO of the bank accused of fraud, organized crime, and banking fraud.<\/p>\n

Again, there is a problem – it is not as easy for Pandey to change the employee bylaws overnight as expected, there is a legal problem to keep Pandey as CEO. <\/div>\n<\/p>\n

<\/div>\n<\/p>\n

If Jyoti Prakash Pandey is to be saved, the essence of the system should be changed. In doing so, there are a lot of problems in the banking sector. Therefore, the Rastra Bank is not in favor of changing the Employees Bylaws immediately for Jyoti Prakash Pandey. <\/div>\n<\/p>\n

<\/div>\n<\/p>\n

Another legal confusion when everyone on the board absconds <\/strong><\/div>\n<\/p>\n

}<\/p>\n

All the directors of Nepal Investment Mega Bank except Madan Acharya are absconding.<\/p>\n

The police have issued an arrest warrant, the court has asked them not to arrest him immediately and a case has been filed in the court keeping 6 operators in the absconding list. <\/div>\n<\/p>\n

<\/div>\n<\/p>\n

This means that the directors of Nepal Investment Mega Bank cannot do anything as directors. The court has asked them not to arrest them immediately, but they are absconding in the court. Any decision made by them in the bank while they are on the absconding list in the court may not be legally recognized. Lawyers argue that any decision taken by the absconding people in the court will not be legally recognized. <\/div>\n<\/p>\n

<\/div>\n<\/p>\n

And neither the board, nor the CEO. Some people think that this will give the wrong meaning again. <\/div>\n<\/p>\n

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So, is it an option for Nepal Rastra Bank to send a representative to the board of Nepal Investment Mega Bank?<\/p>\n

<\/div>\n<\/p>\n

“This could send another wrong message,” NRB officials said.<\/p>\n

Except in the case of takeover, the fact that the central bank is running the board can send a message that the bank is collapsing. ‘<\/div>\n<\/p>\n

<\/div>\n<\/p>\n

Now, what to do in a case where there is no board? The Nepal Rastra Bank (NRB) has said it is seeking legal opinion on the matter. This means that the Rastra Bank has not convinced that we can run the board of the bank, it has not been able to say that the current board can work. The central bank has not been able to decide what to do here. <\/div>\n<\/p>\n

<\/div>\n<\/p>\n

If we choose another CEO, who will sign the contract? <\/strong><\/div>\n<\/p>\n

Another option has also started. Not to run the board immediately and to run the bank by appointing a new CEO. This will affect the work of the bank. It is not something that cannot be imagined for some time without a board, but it is certainly not an easy path. <\/div>\n<\/p>\n

<\/div>\n<\/p>\n

There is also an argument that the bank should move forward by appointing Mahesh Dhakal as the CEO of the bank as Jyoti Prakash Pandey has already been suspended.<\/p>\n

But the CEO has to be appointed by the board, the bank is not in a position to hold a board meeting. If the central bank appoints another CEO, which law should be followed? There is also a legal argument that such a situation occurs only during takeover, which is not making it easier for the central bank to conclude the case. <\/div>\n<\/p>\n

<\/div>\n<\/p>\n

Is takeover an option? <\/strong><\/div>\n<\/p>\n

The Nepal Rastra Bank (NRB) has said that all the indices of Nepal Investment Mega Bank are correct only a few days ago.<\/p>\n

Now, if all the indicators are correct, how to do the takeover? If there is no takeover, who will run the bank? Now, if the deputy CEO is to run the bank as a working officer, can a bank run without a board and that too on the deputy CEO? There are other legal hurdles in this. <\/div>\n<\/p>\n

<\/div>\n<\/p>\n

So what to do? <\/div>\n<\/p>\n

The same cannot be said about this. Nepal Rastra Bank (NRB) is also seeking legal opinion on the issue. <\/div>\n<\/p>\n\n\n","protected":false},"excerpt":{"rendered":"

Kathmandu. Jyoti Prakash Pandey, CEO of Nepal Investment Mega Bank, should have been suspended on the same day the case was filed against him on the charge of fraud, organized crime and banking offense. However, the bank’s website still says that he is the CEO. The bank is trying to make a statement that Pandey […]<\/p>\n","protected":false},"author":1,"featured_media":36221,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[90,96,129],"tags":[],"class_list":["post-36224","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-breaking-en","category-premium-en","category-special-en"],"acf":[],"jetpack_featured_media_url":"https:\/\/english.bankingsansar.com\/wp-content\/uploads\/2026\/08\/nimb-case.jpg","publishedDateNp":"\u0968\u096f \u0936\u094d\u0930\u093e\u0935\u0923 \u0968\u0966\u096e\u0969, \u0936\u0941\u0915\u094d\u0930\u092c\u093e\u0930 \u0968\u0969:\u096a\u096f","_links":{"self":[{"href":"https:\/\/english.bankingsansar.com\/bs_api\/wp\/v2\/posts\/36224","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/english.bankingsansar.com\/bs_api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/english.bankingsansar.com\/bs_api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/english.bankingsansar.com\/bs_api\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/english.bankingsansar.com\/bs_api\/wp\/v2\/comments?post=36224"}],"version-history":[{"count":4,"href":"https:\/\/english.bankingsansar.com\/bs_api\/wp\/v2\/posts\/36224\/revisions"}],"predecessor-version":[{"id":36237,"href":"https:\/\/english.bankingsansar.com\/bs_api\/wp\/v2\/posts\/36224\/revisions\/36237"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/english.bankingsansar.com\/bs_api\/wp\/v2\/media\/36221"}],"wp:attachment":[{"href":"https:\/\/english.bankingsansar.com\/bs_api\/wp\/v2\/media?parent=36224"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/english.bankingsansar.com\/bs_api\/wp\/v2\/categories?post=36224"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/english.bankingsansar.com\/bs_api\/wp\/v2\/tags?post=36224"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}