Police on Sunday arrested Raju Kumar Pradhan, general manager of General Finance, for allegedly misappropriating Rs 78.25 million.

The Central Investigation Bureau (CIB) nabbed Pradhan from Kalanki and handed him over to Metropolitan Police Range, Hanumandhoka, for initiating legal action as per the Banking Offence Act.

Board members of the company had lodged a police complaint against Pradhan, accusing him of misusing the company’s stamp and cheques and abusing his authority, police said.

Pradhan is a permanent resident of Kathmandu ward no 29, but has been living in Syuchatar VDC-1.

According to the police’s initial investigation, Pradhan issued cheques worth Rs 13 million in the name of Prem Dhowj Lama on different occasions although the company had no liabilities to Lama. The cheques were cashed at Everest Bank’s Chabhil branch, where General Finance has an account.

Pradhan has also been found involved in providing loans worth Rs 52.93 million to 11 individuals and institutions against weak or without collateral against the company’s policy, according to the police. He also spent Rs 3.22 million of the company for personal benefits.

Other findings of the police’s investigations are: Pradhan issued two good-for-payment cheques worth Rs 5.09 million in the name of Lama payable from the account of Sachin K Sunuwar, proprietor of Shaharin Verities Food Suppliers, although the account didn’t have enough balance. “Good-for-payment cheques are considered the safest method of payment, but

the misuse of such cheques is a matter of big concern,” said Om Prasad Adhikari, Deputy Superintendent of Police.

Pradhan also made an attempt to receive a payment worth Rs 4 million using fake cheques and stamps of the finance company and printing a ‘good-for-payment’ mark on the cheque in collusion with Sunuwar.

Of late, the police have initiated a crackdown on those involved in banking fraud following revelation of top banking executives’ involvement in fraudulent activities.