Fiscal Nepal
First Business News Portal in English from Nepal
Shankar Group
KATHMANDU: Four businessmen, including prominent industrialists and company executives, have been charged in a banking offence case involving the alleged misuse of more than Rs 4.21 billion in bank loans.
The case has been filed before the High Court Patan against Deepak Bhatt, Sulabh Agrawal, Shahil Agrawal, and Shankarlal Agrawal.
According to the charge sheet submitted to the court, the prosecution has sought recovery of Rs 4.214 billion (Rs 4,21,48,88,807), alleging violations of provisions prohibited under Section 8 of the Banking Offence and Punishment Act, 2008 (2064 BS).
Investigators claim that the accused conspired to misuse working capital and short-term loans obtained by Jagdamba Steels through a consortium of banks led by Nepal Investment Mega Bank.
According to the allegations, the loans were acquired for company operations but were subsequently diverted and invested in shares through Infinity Holding Pvt. Ltd., a company solely owned by Deepak Bhatt, among other entities.
The prosecution argues that the funds were not used for their intended business purposes and were instead channeled into investments through a coordinated arrangement involving the accused individuals.
The Central Investigation Bureau (CIB) had earlier arrested Deepak Bhatt and Sulabh Agrawal in connection with the case. Both remain in custody as legal proceedings continue.
Authorities have alleged that Jagdamba Steels’ chairman Shahil Agrawal, company signatory director Sulabh Agrawal, and Deepak Bhatt acted in collusion to divert the loan proceeds, resulting in significant financial irregularities.
In addition to the banking offence case, Deepak Bhatt and Sulabh Agrawal are also under separate investigation for alleged money laundering.
Investigators claim that multiple bank accounts belonging to members of the Agrawal family were used to create complex layers of transactions aimed at concealing the actual source of funds and the identities of the ultimate beneficiaries.
The charge sheet alleges that the movement of funds through various accounts was designed to obscure ownership and the true destination of the money, raising concerns over possible violations of anti-money laundering laws.
The case is expected to become one of Nepal’s most closely watched financial crime proceedings, given the size of the alleged loan misuse and the involvement of prominent figures associated with one of the country’s major industrial groups.
The court will now examine the evidence presented by prosecutors before determining the next phase of legal proceedings.
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