Police on Sunday arrested two persons on charge of banking fraud.

Bhoj Bahadur Budhathoki, chairman of Pancha Sheel Food Pvt. Ltd, and Rabi Bhakta Sainju, director of the company, stand accused of receiving working capital loan and bank guarantee worth Rs6.75 million from Global IME Bank by putting low valued land and fake land as collateral.

According to Central Investigation Bureau (CIB) of Nepal Police, police arrested Budhathoki of Okhaldhunga from Koteshwor, Kathmandu on August 26 and Sainju of Kavre on August 25.

They have been accused of defaulting loan and bank guarantee taken from the Global IME bank and their collateral did not match the loan amount.

Budhathoki had put two plots of land located at Dhulikhel-2 and one of them was low value land while another plot had fake ownership certificate.

He had used fake government stamp and signature of Survey Department Office, Kavre, to show his ownership on the second plot of land.