Businessmen's Statements Begin in Banking Offense Case at Patan High Court

Kathmandu. Statements of businessmen Deepak Bhatta, Shankar Lal Agarwal, and other defendants charged in a banking offense case have begun at the Patan High Court.

Statements are currently underway in the joint bench of Patan High Court judges Arjun Prasad Koirala and Kabi Prasad Neupane.

Bhatta, who is the chairman of Infinity Holdings, Jagdamba Steels director Shankar Lal Agarwal, Shulabh Agarwal, and Sahil Agarwal have been named as defendants in the case. On Jestha 28, a case was filed at the Patan High Court against them with a claim of 42 crore 14 lakh 88 thousand 807 rupees under banking offense.

The case was filed by the High Government Attorney's Office accusing them of misusing loan funds taken from the bank for purposes other than intended. The charge sheet claims that the amount of 'working capital loan' taken for Jagdamba Steels was invested in Himalayan Re-Insurance through Infinity Holdings with the collusion of Bhatta and Agarwal, and used as a down payment for land purchase.

Shankar Lal, who was reported to be absconding at the time of the charge sheet filing, was arrested by a team from the Central Investigation Bureau (CIB) of Nepal Police on Wednesday and presented at the Patan High Court. His statement is ongoing.

Jagdamba Steels had taken 'working capital loan' and short-term loans from financial institutions including Nepal Investment Mega Bank, Nepal SBI Bank, Kumari Bank, Everest Bank, and Agricultural Development Bank.

The charge sheet states that Jagdamba Steels transferred the loan taken for the purchase of industrial raw materials and daily operations to Deepak Bhatta's personal account in Siddhartha Bank. The demand for punishment under banking offense is based on the claim that the amount was used to purchase the promoter shares of Himalayan Re-Insurance and for personal gain.