Current Branch Manager Rupesh Shrivastav identified the fraud while going through the handover documents provided by his predecessor Rameshwor Chaudhary. After finding that the bank had invested millions of

rupees against the collateral of gold, way beyond the capacity of a branch that small, Shivastav reported to higher authorities.

Following the complaint, a team of representatives from the bank’s eastern regional branch and the central office, investigated the issue. The probe found that the value of the gold that was put up as collateral was way less than the amount invested against it. Moreover, half of the gold deposited was found to be

fabricated.

The borrower, Deepak Soni, a Kanchanpur-based gold trader, had taken loans worth Rs 40 million from the bank during the last Constituent Assembly election.

A candidate from the proportional representation system from Madhesi Janadhikar Forum-Loktantrik, Soni had put up gold bricks and jewelleries as collateral for the loan.

Sources claimed Soni, who was determined to become a lawmaker at any cost, had donated more than Rs 500,000 to please the party chairman, besides spending a huge amount of money in

campaigns.

The bank’s investigation team led by Nar Raj Khanal found the fraud was committed in collusion with former Branch Manager Rameshwor Chaudhary and cashier Meghulal Chaudhary. Rameshwor has been posted to the bank’s Lahan branch, while Meghulal has been suspended, Khanal said.

Soni admitted to the “fault”, but refuted fraud allegations and said he has talked to the bank authorities and that the matter has already been resolved.

The bank has frozen Soni’s property, including two houses in Kanchanpur and Biratnagar.

“As the money belongs to the depositors, we cannot limit ourselves to taking departmental action against the staff, hence our first priority will be to recover the amount,” said Khanal. “We have informed the bank’s central authorities and the incident is being investigated duly,” he said.