A day after Nepal Rastra Bank (NRB) decided to liquidate Nepal Development Bank, another financial institution has landed in trouble for trying to cook up its balance sheets.
On June 14 this year, Binit Mani Upadhyaya, CEO of the finance company, was arrested after borrowers lodged a complaint at the Commission for the Investigation of Abuse of Authority. Since then depositors have withdrawn around Rs 400 million from the finance company. "But we are not facing cash crunch as the central bank is indirectly pumping money into the financial institution," the source said. The company is trapped in the mess that it had engineered itself.