Kumari Bank Recovers Loan Disbursed by Keeping Forged Document as Collateral

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Kumari Bank Recovers Loan Disbursed by Keeping Forged Document as Collateral

November 18: Kumari Bank has stated that it has recovered the loan taken by presenting fake documents of land owned by singer Yogeshwor Amatya.

According to the bank, it has already settled the case where the land ownership document was forged and loan was withdrawn. The land was originally registered in the name of singer Yogeshwor Amatya.

Anuj Mani Timilsina, acting chief executive officer (CEO) of Kumari Bank, said that the bank collected Rs 190 million from the concerned person as soon as the collateral for the loan was identified to be fake. “We took action immediately to settle the loan three months ago after the bank found out that the collateral submitted for the loan was found to be fake,” said Timilsina.

Kumari Bank had approved the loan of Rs 190 million on the basis of documents submitted by Daniel Trading Company last July.

“The bank had given approval for the loan after completing all the procedures. The previous year’s balance sheet of the company was also taken into consideration. When the loan was disbursed, all the major things that the bank looked at, such as the ability of the company to repay the loan seemed positive. Even before the loan was approved, the potential risks were investigated closely, but the collateral was compromised. When we found out, we took action immediately to settle the case,” said CEO Timilsina.

The loan was given to Daniel Trading to buy land from Biruwa Bhumi Bankali Company. CEO Timilsina clarified that the bank did not find any irregularity during the process of disbursing the loan.

“When it was found out that the land mortgage was forged, the bank contacted the debtors and were asked to repay the loan. The loan was repaid after some time,” said Timilsina.

Meanwhile, an investigation is underway into the disbursement of loan of Rs 190 million from Kumari Bank by keeping  fake land ownership document as collateral. The District Public Prosecutor's Office, Kathmandu, on Monday directed the police to investigate the case of banking malpractice. Earlier, the Central Investigation Bureau (CIB) of the police were investigating a case of forgery related to this issue.

 

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