Rajbhandari had extended a loan of Rs 60 million on security of 12 good-for-payment checks worth Rs 5 million each. The loan was issued on personal guarantee extended by Manoj Kumar Chaurasia, proprietor of Sari Enterprises. The good-for-payment checks were issued by Kuleshwor branch of H & B Development Bank.
As per the provision of Nepal Rastra Bank, banks and finance companies cannot extend loan against checks.[break]
“Rajbhandari also did not take the consent of the finance company´s board prior to providing the loan and did not follow other due processes,” a CIB statement issued on Tuesday said. “Necessary investigation has already been initiated in this regard.”
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