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Supreme Court Issues Interim Order Directing No Arrest of Investment Mega Bank Chairman and Directors

Written by space4knews on . Posted in Business.

The Supreme Court has issued a short-term interim order directing that the chairman and directors of Nepal Investment Mega Bank not be arrested immediately. After the Kathmandu District Court issued arrest warrants against the bank’s directors in connection with the auction of collateral linked to Smart Telecom, they filed a writ petition with the Supreme Court. The court has scheduled a hearing for both parties on August 10 and ordered no arrests until then.

August 5, Kathmandu – The Supreme Court has directed that the chairman and other directors of Nepal Investment Mega Bank not be taken into custody. The government is investigating allegations that the bank auctioned Smart Telecom’s assets without official approval. Following the Central Investigation Bureau (CIB) of Nepal Police’s request for further probe into the matter, the Kathmandu District Court issued arrest warrants for all members of the bank’s board of directors.

Following the issuance of the arrest warrants, Nepal Rastra Bank froze the bank accounts of all directors. In response to the CIB’s actions and the district court’s order, the bank’s CEO Jyotiprakash Pandey filed a writ petition in the Supreme Court on behalf of chairman Prithvi Bahadur Pandey and other directors. On Thursday, a single bench led by Justice Tek Prasad Dhungana heard the case and issued the interim order against arrest.

Chairman Pandey sought a permanent injunction and interim order to immediately halt the criminal investigation related to the auction of hypothecated collateral of Smart Telecom, a loan borrower of Investment Mega Bank, effectively preventing any arrests or detention. The interim order extends to chairman Pandey and directors Prajanya Rajbhandari, Kavikumar Tibrewal, Dipankar Shakya Uday, Shalikram Belbase, and Shobha Shrestha. However, the court will decide whether to grant a final order after hearing both parties on August 10, when the interim order’s continuation or cancellation will be determined.