Kathmandu, April 23
Shekhar Golchha, former president of the Federation of Nepalese Chambers of Commerce and Industry, has been arrested by police.
According to AIG Manoj KC, chief of the Central Investigation Bureau, Golchha was taken into custody for investigation based on a probe report by the Securities Board of Nepal.
The CIB stated that, based on the board’s preliminary findings, Golchha and others have been arrested on charges under Sections 94, 95, 96(1), and 98 of the Securities Act 2063, related to collusion and securities offenses.
The board’s report indicates that funds from various insurance companies were used to manipulate shares of different companies.
According to the report, controversial businessman Deepak Bhatta allegedly bought shares at low prices from individuals and private firms, inflated their value, and sold them to insurance companies.
The investigation identifies Bhatta and Sandip Chachan, CEO of Bhirkuti Stock Broking Company, as key figures in the scheme. The board concluded that they committed offenses under Sections 96 and 98 of the Securities Act 2063 by influencing the securities market and engaging in fraudulent transactions. Bhatta has already been arrested and is in custody by the Department of Money Laundering Investigation, while Chachan remains at large.
The report also names Himalayan Reinsurance Company Limited, Himalayan Capserv Limited, Nepal Micro Insurance Company, Himalayan Securities Banker Limited, HLI Large Cap Fund, along with Rohit Gupta and Shekhar Golchha, as having played supporting roles in the scheme.
Additionally, Shubhi Agrawal, Himalayan Life Insurance Limited, Rishiraj Mor, and Rajbahadur Shah are said to have been involved in inflating the share price of Nepal Reinsurance Company. The board had recommended police investigation against these individuals and entities.
Shubhi Agrawal is the wife of Sulabh Agrawal, who is currently in custody in connection with a money laundering investigation. Sulabh Agrawal is also the chairman of Himalayan Life Insurance.
