Nepal Investment Mega Bank CEO released on bail amid criminal case

The CEO of Nepal Investment Mega Bank (NIMB), Jyotiprakash Pandey, has been released on bail after the Kathmandu District Court ordered a deposit of 8 million rupees. Pandey was arrested over allegations of irregularities in the auction process of assets belonging to Smart Telecom.

The case involves the recovery of approximately 4.6 billion rupees through the sale of collateral. Police investigations suggest that during the auction process, the bank included roughly 400 million rupees in unpaid rent and utility taxes owed by property owners in the bid amount, which the bank collected but allegedly failed to pay to the relevant parties, potentially causing loss to state-owned assets.

Despite the criminal case filed by the government, NIMB officials, including the Chairman and CEO, are expected to remain in their positions. Under the Bank and Financial Institutions Act (BAFIA) and Nepal Rastra Bank directives, the filing of a criminal case does not trigger automatic suspension. Disqualification only occurs if a court convicts an individual of specific offenses, such as fraud or corruption, and they have not completed a 10-year sentence since the conviction.