Former Century Bank Chair Rajesh Shrestha Among Eight Arrested

The Central Investigation Bureau (CIB) has apprehended Rajesh Shrestha, the former Chairman of Century Commercial Bank, along with seven others, on charges of irregularities in loan disbursement. This arrest comes as a part of the ongoing investigation into alleged financial misconduct within the banking sector.

This latest action follows the prior arrests of former CEOs Tulsiram Gautam and Manoj Neupane, along with ten others, in connection with the same case. The investigation revolves around questionable loan practices, particularly concerning a substantial disbursement to Deurali Multipurpose Cooperative Chairman Rabindra Chaulagain, amounting to a staggering Rs. 2.25 billion.

Of particular concern to investigators is the discrepancy between the loan amount and the collateral provided. The bank reportedly extended the significant loan despite only receiving collateral valued at Rs. 800 million, raising eyebrows and prompting scrutiny into the bank’s lending practices.

Authorities are intensifying their efforts to unravel the intricacies of this case, focusing on the alleged provision of excessive loans against inadequate collateral.