KATHMANDU, May 1: The Department of Money Laundering Investigation (DoMLI) has requested detailed information on premium payments linked to the purchase of promoter shares of several microinsurance and reinsurance companies. The move comes as part of an ongoing probe into suspicious financial transactions.
According to a notice issued by the DoMLI, founding shareholders must disclose the source and details of payments made as premiums during purchase of promoter shares. The directive specifically targets investors of Nepal Micro Insurance, Guardian Micro Life Insurance, Crest Micro Life Insurance, Liberty Micro Life Insurance, Protective Insurance, Star Micro Insurance, Trust Micro Insurance, and Himalayan Reinsurance.
Insurance companies are cheating the people, and destroying the...
The department has asked shareholders to provide clear documentation of premium amounts deposited into the bank accounts of individuals and institutions beyond the companies’ paid-up capital. Required details include the account holder’s name, bank account number, and the financial institution used for the transactions. All concerned parties have been given 15 days from the publication of the notice to submit the information.
The investigation follows findings by the Central Investigation Bureau (CIB) of Nepal Police, which revealed that Deepak Bhatta, Sulav Agrawal, and others were involved in buying and selling shares of these companies through Bhrikuti Broking Company. Himalayan Reinsurance Limited (HRL), in which Bhatta holds a 4.5 percent stake, was found to have purchased 38,441 shares from Infinity Holdings, a company fully owned by him. HRL later sold these shares to Nepal Micro Insurance (90,000 units), Guardian Micro Life Insurance (80,000 units), Crest Micro Life Insurance (15,000 units), and Protective Micro Insurance (15,814 units).
Bhatta is a major investor across these firms, holding 15 percent shares each in Nepal Micro Insurance, Guardian Micro Life Insurance, and Crest Micro Life Insurance, and 21.43 percent in Protective Micro Insurance. State law prohibits promoters from transferring shares between companies in which they hold stakes, raising concerns about violations of regulatory provisions.
The investigation has also implicated prominent industrialist Shekhar Golchha, former president of the Federation of Nepalese Chambers of Commerce and Industry. Golchha, who previously chaired HRL, has been arrested on charges related to the alleged scam and is currently in police custody. His case, tied to suspected money laundering activities, is scheduled for hearing on Friday after being postponed earlier.
The DoMLI’s latest directive underscores growing scrutiny of Nepal’s insurance sector, where questions of transparency, compliance, and financial integrity have repeatedly surfaced. Authorities say the investigation aims to ensure accountability and prevent misuse of promoter share transactions that could undermine public trust in the financial system.
