Kathmandu. The Chief Executive Officer of Nepal Investment Mega Bank, Jyoti Prakash Pandey, has been arrested over the alleged involvement in the auction of securities in Nepal.
In a statement today, Cibfin said it had received “serious attention” as “a criminal view of a professional decision made on the basis of law”. “The Bank and Financial Institutions Act, 2073, the Secured Transaction Act-2063 BS and the integrated directives of Nepal Rastra Bank have clear provisions regarding loan disbursement, loan recovery and mortgage auction,” the statement reads. ’
The entire banking sector has been shocked, frightened and horrified by the subsequent view of professional decisions and actions made on the basis of existing laws and regulations, and the arrest and detention of a professional in a criminal manner until the allegations are proven by objective studies and investigations. “After the liquidation of a borrower institution, will the lending bank and financial institution have the first right over the collateral assets of that institution or will the government of Nepal have the first right?” A serious question has arisen. ’
What happens if the companies that have invested billions of rupees in loans by the banks come under the control of the Government of Nepal for some reason and the loan deteriorates due to some reason and the situation is not recovered? “It has created complex legal questions and serious confusion,” the statement said. “It is certain that the plans, policies and programs of national importance recently released by the Government of Nepal will be jeopardized if they are barred from auctioning the collateral or if they are imprisoned while recovering the loan,” the statement reads.
The state and regulatory agencies should investigate if banks and financial institutions have committed any illegal activities, and the concerned banks and financial institutions should provide necessary support to the state and subordinate agencies in this work. “We are clear that if the investigation proves any wrongdoing, action should be taken in accordance with the law,” the CBFIN said in a statement. We heartily appeal to the government and its subordinate bodies to be serious and sensitive in time towards such acts that would cause serious damage to the social life and reputation of the professionals, deviate from the purpose of contributing within the country, run the day-to-day operations of banks and financial institutions, financial governance, interest of depositors, trust of shareholders and customer service, and cause unimaginable damage to the entire economy. ’
