The police have arrested two persons accused of banking frauds — Bhoj Bahadur Budhathoki and Rabi Bhakta Sainju.

They have been accused of receiving working capital loan and bank guarantee worth Rs6.75 million from Global IME Bank by putting low-value land plots and fake ownership certificates up as collateral.

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

Budhathoki, who hails from Okhadhunga, is the chairman of Pancha Sheel Food Pvt Ltd and Sainju, hailing from Kavre, is the company’s director.

Budhathoki had put two plots of land located at Dhulikhel-2. One of the plots was low-value, while another never existed as fake ownership certificate was produced. He had used fake government stamp and signature of the Kavrey Survey Office on fake blue print and map of the land. The land was valued based on the fake documents to cheat the bank, according to the police.

With the police investigating based on the banking offense act, the duo will also be penalised based on the provision regarding fraudulent activities in the Civil Code.

Meanwhile, the CIB also nabbed Narayan Jung Ale, convicted by the Kathmandu District Court in a fraud case eight years ago. The court had sentenced him 6 month in prison and slammed a penalty of Rs80,627. He was arrested from Kapan, Kathmandu.

Ale, who was headmaster of Kent Public School based in Nagarkot, had accepted $1151 sent by Japanese national Veyanagi Sachiko for providing education opportunity to disadvantageous student Shashi Jung Ale.