KATHMANDU, April 22: Four board members of Himalayan Reinsurance Limited (HRL) have resigned amid widening investigations into a financial scam linked to the company’s promoter, businessman Deepak Bhatta.
The HRL board accepted the resignations during a meeting held last Friday, according to an official statement released by the company. The outgoing directors include Amit More (representing Shareholder Group ‘A’), Rajiv More and Subhechha Kharel (both representing Shareholder Group ‘B’), and independent director Subhash Kumar Jhunjhunwala.
The then HRL Chairperson Shekhar Golchha had already resigned from his position. He has been replaced by Udaya Kumar Niraula.
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The board has appointed two new directors: Dipak Kumar Mishra, representing Shareholder Group ‘A’ via Shree Kalika Fincorp Pvt Ltd, and Ashish Chandra Neupane, who joins as an independent director representing general shareholders.
The Department of Money Laundering Investigation (DoMLI) and the Central Investigation Bureau (CIB) of Nepal Police are currently investigating HRL officials and board members in connection with the scam. The Nepal Insurance Authority (NIA) has also requested written clarifications from relevant stakeholders.
Bhatta stands accused of transferring Rs 2.73 billion from HRL to his personal account. Along with Sulav Agrawal, chairman of Himalayan Life Insurance, Bhatta has been implicated in the suspected embezzlement of HRL funds to purchase shares of Nepal Reinsurance Company for their vested interests.
Preliminary findings suggest Bhatta’s involvement in money laundering, banking and insurance-related offenses, revenue evasion, and misuse of public property. Shares of companies linked to him have been frozen by CDS and Clearing Ltd, while Nepal Rastra Bank has placed Bhatta, his firm Infinity Holdings, and related individuals under financial surveillance.
Investigators also discovered that Bhatta was trading shares through Bhrikuti Stock Broking Company, which allegedly provided excessive funding in his name and that of his associates without complying with state rules. Furthermore, Bhatta is suspected of exerting influence over high-level officials at regulatory bodies, including the NIA, to advance his undue interests.
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