Nepal industrialist Golchha arrested for alleged irregularities in shares trading

Kathmandu, Apr 23 (PTI) Businessman and former president of Nepal's industry body Shekhar Golchha was on Thursday arrested here in connection with alleged irregularities in shares trading.
     The Central Investigation Bureau (CIB) arrested Golchha, the former chief of the Federation of Nepalese Chamber of Commerce and Industries (FNCCI), a day after Nepal Home Minister Sudan Gurung tendered his resignation after facing allegations related to his financial conduct while in office.
     Gurung's resignation came amid growing criticisms over his alleged business links and shares’ transactions with a controversial businessman identified as Deepak Bhatta, one of the persons Golchcha is alleged to have colluded with.
     Golchha was arrested from his residence in Naxal area in the outskirt of Kathmandu in the evening after the Kathmandu District Court issued a warrant, CIB spokesperson Shiva Kumar Shrrestha said.
     He has been taken into custody in connection with various illegal activities such as credit share trading, price manipulation and unsettled transactions that may have artificially influenced share prices.
     Golchha was arrested on the basis of an investigation and supervision report prepared by the Securities Board of Nepal into alleged collusion in shares trading involving other controversial businessmen, including Bhatta and Sulav Agrawal.
     Bhatta, Agrawal and others are already in police custody in connection with a money laundering case.
     Golchha is also the chairman of the Golchha Group of Industries and the Himalayan Reinsurance Company.
     According to local media reports, Gurung has investments in Star Micro Insurance Co and Liberty Micro Life Insurance, where controversial share traders Bhatta and the Shanker Group of Industries have stakes.
     As per the Securities Board of Nepal report, funds associated with Golchha and several institutions were used by a stockbroker to purchase shares in the names of Bhatta and others.
     “The broker is said to owe Golchha around NRs 525 million,” The Kathmandu Post said.
     Golchha had earlier told Kantipur that he resigned as chairman of Himalayan Reinsurance Company after learning of alleged illegal share purchases by Bhatta, Agrawal and his wife.
     “Such a large transaction had taken place, and funds of various public limited companies had been misused,” he said, adding that the issue was not even tabled at a board meeting.
     Golchha maintained that he was not the ultimate beneficiary of the transactions, The Kathmandu Post added.

(This story has not been edited by THE WEEK and is auto-generated from PTI)