Kathmandu. The Kathmandu District Court has ordered the release of Prithvi Bahadur Pandey, the chairman of Nepal Investment Mega Bank (NIMB), on bail of Rs 40 lakh. A single bench of District Judge Nawaraj Dulal has ordered the release of Pandey on bail in connection with a case related to fraud and organized crime.
Pandey was released after paying a bail of Rs 40 lakh fixed by the court. A case was filed against him on charges of cheating and organized crime on August 12. According to Pandey’s statement in the court, after Smart Telecom did not repay the loan amount taken from the bank, the bank auctioned the goods of Smart Telecom as per the legal process for the recovery of the loan.
In his statement to the court, Pandey said that he did not personally seize or misuse the Smart Telecom’s equipment.
The court order also states that Pandey had made a statement that he had auctioned the goods of Smart Telecom and recovered the money from the bank. The main dispute in this case seems to be centered on whether the process of auctioning the property pledged by the bank for the recovery of the loan can be interpreted as a criminal offence.
The process of recovering arrears from the collateral taken for loan security while issuing loans in banking transactions is considered to be a prevalent banking practice. In the case of Smart Telecom, the bank has also auctioned the equipment and equipment collateralized to recover its loans.
That is, the auction at the center of the dispute is not a personal decision or a transaction for personal gain, but it is related to the recovery of the bank’s outstanding loans.
See also:
Arrest warrant issued against chairman of Nepal Investment Mega Bank
