Ram Janaki Health Foundation Chairman Om Prasad Pandey Arrested for Loan Misuse

Kathmandu. Om Prasad Pandey, Chairman of Ram Janaki Health Foundation, has been arrested on charges of misusing loans taken from Prabhu Bank Limited by setting up shell companies and artificial businesses. The Central Investigation Bureau (CIB) of Nepal Police arrested him on Wednesday from Dhanusha. Pandey, residing at Ratopul, Ward No. 9, Kathmandu Metropolitan City, is the chairman of the board of directors of Ram Janaki Health Foundation. He had set up a shell company named 'Institute of Agriculture Forest and Veterinary Sciences Private Limited' in Bardibas Municipality, Ward No. 6, Mahottari. The CIB has stated that Pandey, who is also the sole director of the company, obtained loans from the bank without a detailed project report (DPR) and with an unusually high valuation of collateral. The Bureau's statement mentions that the loan was misused by using it for purposes other than those for which it was taken from Prabhu Bank Limited, and that he committed an offense under the Banking Offenses and Punishment Act, 2064. The CIB team took Pandey, who was absconding after obtaining an arrest warrant from the Patan High Court, Lalitpur, on Mangsir 28, 2082, into custody on Wednesday from the premises of Janaki Medical College in Ramdaiya, Ward No. 1, Chhirheshwarnath Municipality, Dhanusha. The Bureau has stated that further investigation is underway against the arrested Pandey under banking offenses.