Largest Scandal in Nepal’s Insurance History: 42 Charged, Including Two Former Insurance Authority Chairmen

Kathmandu – The investigation into what is being described as the largest scandal in Nepal’s insurance history has concluded. Following an investigation by the Central Investigation Bureau (CIB), a case was filed yesterday at the Kathmandu District Court. A total of 42 individuals, including former chairmen of the Nepal Insurance Authority, Madan Dahal and Sharad Ojha, have been charged under the Insurance Act, 2022.

Government prosecutors have filed insurance offense charges against former Insurance Authority chairmen Madan Dahal and Sharad Ojha, alleging abuse of regulatory authority.

The case has been filed against the two former chairmen of the Nepal Insurance Authority. Ojha is a former chairman who was dismissed by the government for allegedly submitting forged documents, while Dahal is a Joint Secretary under Nepal’s Ministry of Finance.

According to the CIB investigation, the two former chairmen allegedly acted in concert with principal accused persons, including Deepak Bhatt, Sulabh Agrawal, Shekhar Golchha, and others. Police have alleged in the charge sheet that the former chairmen became accomplices by committing regulatory irregularities. The charge sheet further alleges that senior officials of the Insurance Authority assisted criminal activities through misuse of discretionary powers.

This investigation is being viewed as the largest scandal in Nepal’s insurance history. The CIB examined a series of serious allegations, including the misuse of more than NPR 3 billion from Himalayan Reinsurance Limited to purchase shares for personal benefit; policy actions that allegedly disadvantaged Nepal Reinsurance Company Limited in order to strengthen Himalayan Reinsurance; attempts to gain control over Nepal Reinsurance shares through coordinated transactions; and the misuse of funds from Guardian Micro Life, Crest Micro Life, Nepal Micro Insurance, Liberty Micro Insurance, and Protective Micro Insurance for internal share trading activities.

During the investigation, it was also found that the accused allegedly attempted to gain control of Nepal Reinsurance shares. The police investigation found that Himalayan Investment Banker Limited, Himalayan Securities Banker, HLI Large Cap Fund, Nepal Micro Insurance Company, Crest Micro Insurance Company, Guardian Micro Life Insurance Company, Liberty Micro Insurance, and Protective Micro Insurance purchased shares worth millions of rupees.

Defendants Named in the Case

1. Ashish Shrestha – Chairman, Nepal Micro Insurance
2. Shekhar Golchha – Chairman, Himalayan Reinsurance
3. Subash Bahadur Shrestha – CEO, Himalayan Securities
4. Deepak Bhatt – Investor, Himalayan Reinsurance and Guardian Micro Insurance
5. Sulabh Agrawal – Chairman, Himalayan Life; Shankar Group
6. Upasana Paudel – CEO, Himalayan Reinsurance
7. Mrigendra Nath Rimal – CEO, Nepal Micro Insurance
8. Siddhanta Jhunjhunwala – Director, Nepal Micro Insurance
9. Latika Golyan – Director, Nepal Micro Insurance
10. Sunita Shrestha – Director, Nepal Micro Insurance
11. Anup Malakar – Director, Nepal Micro Insurance
12. Badri Sigdel – Director, Nepal Micro Insurance
13. Pravina Dahal – Director and Investment Committee Chair, Nepal Micro Insurance
14. Sujal Malla – Investment Committee Member, Nepal Micro Insurance
15. Amit Mor – Director, Himalayan Reinsurance
16. Shahil Agrawal – Investment Committee Coordinator, Himalayan Reinsurance
17. Rohit Gupta – Director, Himalayan Reinsurance
18. Rajiv Mor – Director, Himalayan Reinsurance
19. Shubhechha Kharel – Director, Himalayan Reinsurance
20. Subash Kumar Jhunjhunwala – Director, Himalayan Reinsurance
21. Manish Kumar – Indian national; Investment Committee Member, Himalayan Reinsurance
22. Deepak Kumar Shrestha – Chairman, Himalayan Securities Banker; employee of Himalayan Reinsurance
23. Sitaram Wagle – Director, Himalayan Securities Banker
24. Akanksha Gupta – Director, Himalayan Securities Banker
25. Shishir Gaire – Chairman, Himalayan Capserv
26. Ritesh Pradhan – CEO, Himalayan Capserv Ltd.
27. Kapil Kumar Dahal – Chairman, Himalayan Investment Banker; CEO, Nepal Himalayan Life
28. Rajan Prasad Adhikari – Director, Himalayan Investment Banker
29. Bidur Puri – Makwanpur
30. Binu Ghimire – Director, Himalayan Investment Banker
31. Narayan Kumar Adhikari – Director, Himalayan Investment Banker
32. Utsav Pradhananga – Director, Himalayan Investment Banker
33. Sumer Shamsher Rana – Investment Coordinator, Himalayan Investment Banker
34. Subash Paudel – Investment Committee Member, Himalayan Investment Banker
35. Shalini Sanghai – Investment Committee Member, Himalayan Investment Banker
36. Pratik Joshi – Investment Committee Member, Himalayan Investment Banker
37. Sandeep Chachan Agrawal – Executive Chairman, Bhrikuti Stock Broking Company
38. Subhi Agrawal – Share trader
39. Rishiraj Mor – Share trader
40. Bijay Bahadur Shah – Owner, Jawalakhel Distillery; share trader
41. Sharad Ojha – Former Chairman, Nepal Insurance Authority
42. Madan Dahal – Joint Secretary and Former Chairman, Nepal Insurance Authority.