Case filed against four including Deepak Bhatta and Sulav Agrawal in Rs 421.4 million Jagdamba Steels loan misuse case

KATHMANDU, June 11: The government has filed a case at the Commercial Bench of Patan High Court against four individuals, including Chairman of Infinity Holdings Pvt Ltd, Deepak Bhatta, over alleged misuse of bank loans amounting to more than Rs 421.4 million.

The case, registered under banking offence laws, is based on an investigation by the Nepal Rastra Bank and the Central Investigation Bureau (CIB) of Nepal Police.

Others charged in the case include Chairman of Jagdamba Steels Ltd, Shahil Agrawal, account operator Shulabh Agrawal, and Shankarlal Agrawal.

According to the charge sheet filed by the Special Government Attorney’s Office, Jagdamba Steels had obtained working capital and short-term loans from various banks for business operations. Investigators claim the loans were diverted for purposes unrelated to the company’s operations.

The accused are alleged to have prepared forged documents showing the purchase of land in Sanepa, Lalitpur, to justify the transfer of loans. Based on those documents, Rs 450 million was transferred from Jagdamba Steels’ account to Bhatta’s personal account before being moved to the account of Infinity Holdings.

Investigators say the funds were ultimately used to purchase founder shares of Himalayan Reinsurance Ltd.

The investigation further found that several bank accounts belonging to members of the Agrawal family were used to circulate the money in a complex manner and create the appearance that the funds had been returned to Jagdamba Steels.

Prosecutors have sought recovery of Rs 411.49 million and an additional fine equivalent to the claimed amount. Under the Banking Offence and Punishment Act, 2008, the charges carry a possible prison sentence of six to eight years for offences involving amounts between Rs 100 million and Rs 500 million.

Shankarlal Agrawal has been named as an accomplice. Prosecutors allege he knowingly assisted in concealing the offence and have sought a prison sentence of three to four years along with a reduced fine.

The charge sheet also calls for separate investigations against Deepak Bhatta and Shulabh Agrawal under the Asset (Money) Laundering Prevention Act, 2008, on suspicion of acquiring assets through the misuse of bank loans.

The prosecution has additionally requested arrest warrants against Shahil Agrawal and Shankarlal Agrawal, who are currently absconding, and asked the court to order police to produce them before the court.