Probe Ordered into Alleged Misuse of Funds Linked to Himalayan Reinsurance

Kathmandu — The Department of Money Laundering Investigation has directed an inquiry into the use of a large sum of money linked to Himalayan Reinsurance Company Limited. In an official letter to the Nepal Insurance Authority, the department has asked for a detailed investigation into the share purchases made by the company’s promoter shareholder, Dipak Bhatt.According to the department, Bhatt is seen to have used funds from multiple sources to acquire shares from the secondary market, including Nepal Reinsurance Company Limited. The amounts involved include approximately NPR 2.73 billion from Himalayan Reinsurance, over NPR 221 million from its subsidiary Himalayan Securities Broker, around NPR 370 million from a subsidiary of Nepal Life Insurance, more than NPR 251 million from HLI Large Cap Fund, and over NPR 161 million from Nepal Micro Insurance Company. In total, more than NPR 3.81 billion appears to have been mobilized across different dates.The transactions were reportedly carried out through Bhirkuti Stock Broking Company Pvt. Ltd. (Broker License No. 55). Following these findings, concerns have been raised regarding whether there was any financial irregularity or misuse of funds during the course of insurance business operations.The Department has instructed the Nepal Insurance Authority to conduct a thorough investigation and submit a report with its findings and opinion within seven days. The case has raised serious questions about financial transparency and regulatory oversight within the insurance sector.