The Supreme Court upheld the Nepal Rastra Bank’s regulating authority in banking and financial institutions.
Issuing the verdict in a dispute between NRB and Kumari Bank chairman and its board members, the apex court upheld NRB’s authority.
A division bench of Justices Anup Raj Sharma and Khil Raj Regmi scrapped the writ petition filed by Kumari Bank chairman Nur Pratap Rana and board members Laxman Shrestha and Santosh Kumar Lama. They had challenged the NRB’s authority to regulate their expenditure while opening the bank.Stating that Kumari Bank’s chairman and the members had spent illegally, the NRB directed them to return the amount to Kumari Bank. The trio had challenged NRB direction to return Rs 15 million they spent while opening the bank, as they could not produce bills and vouchers of their expenditure or details of spending.
When NRB directed Kumari Bank’s chairman and members to return the amount, they filed a petition at the apex court. They challenged the NRB’s authority to question and direct them to return the amount that was approved by the general annual meeting of Kumari Bank.“The expenditure was approved by the first annual general meeting of Kumari Bank as per Clause 12 (a) of Banijya Bank Act 2031 and Clause 15 (2) of the Company Act 2031 and NRB’s direction was illegal and nothing but a threat,” the petition stated.NRB had directed the trio to return the amount in cash four years ago after finding expenditure illegal.
Issuing the verdict in a dispute between NRB and Kumari Bank chairman and its board members, the apex court upheld NRB’s authority.
A division bench of Justices Anup Raj Sharma and Khil Raj Regmi scrapped the writ petition filed by Kumari Bank chairman Nur Pratap Rana and board members Laxman Shrestha and Santosh Kumar Lama. They had challenged the NRB’s authority to regulate their expenditure while opening the bank.Stating that Kumari Bank’s chairman and the members had spent illegally, the NRB directed them to return the amount to Kumari Bank. The trio had challenged NRB direction to return Rs 15 million they spent while opening the bank, as they could not produce bills and vouchers of their expenditure or details of spending.
When NRB directed Kumari Bank’s chairman and members to return the amount, they filed a petition at the apex court. They challenged the NRB’s authority to question and direct them to return the amount that was approved by the general annual meeting of Kumari Bank.“The expenditure was approved by the first annual general meeting of Kumari Bank as per Clause 12 (a) of Banijya Bank Act 2031 and Clause 15 (2) of the Company Act 2031 and NRB’s direction was illegal and nothing but a threat,” the petition stated.NRB had directed the trio to return the amount in cash four years ago after finding expenditure illegal.
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