More Than NPR 4 Billion Misappropriated from Five Insurance Companies, Including Himalayan Reinsurance
Kathmandu — A police investigation has concluded that more than NPR 4 billion was misappropriated from five insurance-related companies, including Himalayan Reinsurance. The investigation has also found that funds collected from insurance operations were diverted and invested in the securities market.
The Central Investigation Bureau (CIB) of Nepal Police has completed its investigation into defendants, including Deepak Bhatt and Shankar Group director Sulav Agrawal, and has submitted its report to the District Government Attorney’s Office.
The CIB has recommended filing charges against former Himalayan Reinsurance Chairman Shekhar Golchha, Jawalakhel Distillery promoter Raj Bahadur Shah, former Himalayan Reinsurance directors Amit Mor, Rajiv Mor, Shubhechha Kharel, Subhash Kumar Jhunjhunwala and Manish Kumar, as well as Chief Executive Officer Upasana Paudel. The bureau has also recommended that businessman Rishiraj Mor be named as a defendant. Most of those implicated have maintained that they became aware of the matter only during the course of the investigation.
According to the investigation report, more than 40 individuals should be prosecuted in connection with the case. Police have recommended seeking a prison sentence of up to five years against the accused for insurance-related offences. The District Government Attorney’s Office is currently reviewing the investigation report submitted by the police.
The investigation concludes that the accused misappropriated approximately NPR 4 billion from insurance companies associated with Himalayan Reinsurance. Investigators found that funds paid by policyholders were withdrawn and invested elsewhere without authorization.
According to the report, insurance funds were diverted into securities investments. The investigation found that the alleged misappropriation involved five entities: Himalayan Reinsurance, Nepal Micro Insurance, Himalayan Cap serve, Himalayan Securities Banker, and HLI Large Cap Fund. At the time, Shekhar Golchha was serving as Chairman of Himalayan Reinsurance.
The CIB is continuing separate investigations into potential banking offences and securities-related violations.