Century Commercial Bank Case Unravels: Massive Loan Embezzlement Discovered

Amidst the ongoing investigation into the financial irregularities of the Deurali Multi-Purpose Cooperative, a startling revelation has emerged implicating fraudsters associated with Century Commercial Bank. The Central Investigation Bureau (CIB) uncovered a web of deceit orchestrated by Rabindra Chaulagai, the cooperative’s owner, who not only siphoned funds but also obtained substantial loans through dubious means.

During the course of this inquiry, it was revealed that Chaulagai, in addition to misappropriating cooperative funds, orchestrated a scheme involving fraudulent mortgages across four of his companies. In a significant development, CIB made several arrests on Tuesday, including the former Chief Executive Officer (CEO) of Century Commercial Bank Limited, Manoj Neupane, and ex-CEO Tulsiram Gautam. Bureau chief AIG Kiran Bajracharya confirmed these arrests, citing complaints filed by Nepal Rastra Bank.

Among those apprehended were current and former employees of Prabhu Bank, which has since merged with Century Bank. Neupane, now serving as the Deputy CEO of Prabhu Bank, along with others, faces allegations of irregularities in loan disbursement during their tenures at Century Bank.

Similarly, among those arrested are existing employees of Prabhu Bank Dilip Baral, Dipesh Pradhan, Raman Shrestha and Rajesh Bhandari. They are also former employees of Century Bank. It is alleged that they were involved in loan embezzlement during their stay at Century.

Similarly, the then employees of Century, Sabin Ghimire, Subas Shrestha, Anupama Shrestha Manandhar, Sunil Basnet were also arrested, said Bureau SP Sudhirraj Shahi. SP Shahi informed that they were detained under banking offences. The bureau has prepared to arrest others involved in the case.

After it was found that Neupane had provided loans to Century before Prabhu Bank acquired it, the Nepal Rastra Bank had written to CIB for investigation and action.

The investigation unearthed startling figures, revealing a staggering loan amount of NPR 2.11 billion extended to Chaulagai by Century Bank. However, it was discovered that a significant portion of these loans, totaling NPR 99 million, were obtained through overvaluation tactics. Superintendent of Police Sudhirraj Shahi disclosed that overvaluation of loans amounting to NPR 1 billion has been identified thus far.

The fallout from Century Bank’s loan defaults has had reverberations, with Prabhu Bank witnessing a sharp spike in its non-performing loan ratio (NPL). Concerns mount as the bank’s overdue general meeting remains unaddressed, prompting heightened scrutiny from both CIB and Nepal Rastra Bank.

As investigations press forward, authorities remain steadfast in their pursuit of justice, signaling a concerted effort to hold accountable those responsible for perpetrating financial malfeasance on such a significant scale.