Indosuez bank duped in lending

Gopal Devkota

BIRGUNJ, Jan 3 - Hardly a month after Rastriya Banijya Bank (RBB) was swindled of Rs 30 million, another incident involving Rs 10 million has come into limelight, this time involving Nepal Indosuez Bank. The name of Mittal Brothers have surfaced in both transactions.

The brothers, Raju Mittal and Bishnu Mittal, known to transact with almost half a dozen banks in Birgunj, were, however, unavailable for comments.

Two of their transactions have already led to the initiation of auctioning of the collateral involved, one by RBB and the other being that of the collateral pledged for the Rs 10 million credit from Indosuez Bank. The auctioning process was initiated after default in payment of interest and the auction was to take place today.

"It never occurred that the party will default in paying the interest amount. The lost money would be compensated through the collateral," said Tulsi Ram Gautam, Manager of Indosuez Bank in Birgunj.

Though Indosuez Bank has claimed that it would be able to retrieve the lost money through the collateral pledged, local business entrepreneurs claim that the bank in no way can recover the full Rs 10 million.

Employees of the bank allege that Mittal Brothers have pledged the collateral at an inflated value. "The brothers are involved in taking bank employees into their confidence before indulging in shady transactions, putting at risk millions of rupees belonging to different banks," said an employee requesting anonymity.

Though Indosuez is likely to recover a part of their loss, Rs 30 million lent by RBB is irrecoverable since no collateral was pledged. The RBB scam had taken place on a letter of credit drawn for the payment of 65 trucks of chillies being imported from the Indian state of Andhra Pradesh.

"Since the green signal for the Rs 30 million LC was given from the top (indicating the RBB head office), it would be wise to question the top authorities for the limit to the LC," said Manager of RBB branch Birgunj Hemanta Raj Joshi.

"However, the fault lies with East India Transport Company in the Rs 30 million LC transaction. RBB will file a case and recover the money," he added. However, RBB employees say that no action on the scam so far has been initiated.

Hoteliers condemn Nepal bandh

Post Report

KATHMADNU, Jan 3 - Hotel Association Nepal (HAN) issuing a press statement today has condemned the Nepal bandh called by nine left parties consecutively for two days on January 1 and 2, 2001.

HAN said that tourism industry has been severely hit with a series of violence, Nepal bandh, and Hrithik Roshan’s alleged remarks on Nepal and Nepali people, hijacking of Indian Airlines last year and at times hotel workers’ recusant strike.

A delegation of HAN officials had met with the Prime Minister, deputy Prime Minister, and Home Minister, nine left parties and other concerned government officials and requested them to stop such activities, but all had been in vain, the press statement mentioned.

Tourism industry, which earns huge amount of foreign currency and employs a large number of people across the country, has had to face severe blows in recent years. The HAN reports that, during peak season around 2218 tourists enter Nepal daily. And, on an average each tourist spends 12 days in Nepal. Therefore, one day’s bandh hit overall 27,281 tourists’ flow in the country. Above all, continued violence and strikes also tarnishe Nepal’s international image and shunned by tourists, worried HAN said.

HAN regrets the communal tone adopted by the Nepal bandh organisers. The mob targeting the entrepreneurs and inflicting damage to properties and the consequent loss incurred has hugely hurt the business community.

HAN feels that all political parties, including the ruling party, should maintain law and order in the country, otherwise, billions of rupees will be lost with the closure of all sorts of industries. The association also demands that the government should introduce an act to prevent such anti-social activities like Nepal bandhs, strikes, among others and save the country from going to ruins.