Ashok Sherchan imprisoned in Nepal banking fraud case

Ashok Sherchan, the former CEO of Prabhu Bank, has been imprisoned pending trial by the Patan High Court. This marks the first instance in Nepal’s banking history where a former CEO has been jailed in connection with a banking offense case.

The charges involve the alleged misuse of over NPR 77 million. Specifically, Sherchan is accused of unlawful loan disbursement by colluding with a borrower for the Janaki Health Foundation, bypassing Nepal Rastra Bank regulations and providing loans without sufficient collateral. Additionally, he is accused of unauthorized fund usage from the bank’s parking account without approval from the Board of Directors.

The case follows an investigation by the Central Investigation Bureau (CIB) and a report from the Nepal Rastra Bank. The prosecution is seeking penalties under the Banking Offenses and Punishment Act, 2064.