Corruption runs deep at LROs

POKHARA, July 3: The statement recorded at the police office by one Santosh Paudel, who swindled some Rs 70 million from nine banks and financial institutions (BFIs), has disclosed how deep rooted corruption is in Nepal´s Land Revenue Offices (LROs), agencies that record all land and housing ownerships and transactions.

“It is easy to bribe the staff there and by paying just Rs 400 or 500 you can get them do whatever you want,” reads the statement that Paudel recorded at District Police Office (DPO), Kaski. During the interrogation, he elaborated that he resorted to this simple tactic just as other people did.

His statement that the staff at LROs were readily preparing fake ownership certificates -- which is a grave crime of forgery -- for just a few hundred rupees has surprised even police officials. But Paudel says that this is the reality at LROs.

Using fake land ownership certificates already pawned at different BFIs, Paudel had pledged the same plots of land as collateral at other financial institutions and swindled about Rs 70 million.

Paudel has disclosed to police that he has been regularly bribing LRO staff at the record keeping, enforcement and computer sections. His statement indicates that seven land revenue officials working in those sections and currently under police interrogation could be proved to be involved in forgery.

“Paudel has admitted that he has been swindling people with forged documents in collusion with LRO staff. He has also shed light on the financial irregularities of LRO staff,” a police official involved in the investigation of Paudel´s case told Republica.

He also added that it was difficult to believe junior staff had the audacity to carry out such grave crime without the blessings and involvement of senior LRO officials. Police suspect that senior LRO officials are also involved in the racket.

“If the racket runs deep and the swindled amout is huge, as seen in this case, we believe the volume of irregularities must also be hefty. Rs 500 is too small an amount to influence staff into perpetrating such a grave crime,” said the police official.

Deputy Suprintendent of Police (DSP) Tul Bahadur Karki of DPO, Kaski, meanwhile, disclosed that Kamal Man Gubhaju and Bir Bahadur BK, both aides of Paudel, have claimed in their statements that they had acted just as Paudel suggested to them.

Police said they will soon start recording statements from seven LRO officials, including three still in detention and three released on Friday against a reappearance date. After that, the police would also record a statement from chief of Kaski LRO Mukunda Dhakal.

So far, LRO officials have claimed that the fake documents were not prepared by land revenue officials. “Preparing a fake document is nothing short of committing suicide. No LRO official will do it even if he is paid a huge amount,” Dhakal said.

He instead claimed that the fake docuements furnished by Paudel were so real even the LRO officials were deceived and they readily accepted them as bank loan collateral.

But police officials investigating the case do not believe it was a case of sheer negligence or deception. “How can we accept it when the mastermind behind the racket himself says he has been paying LRO staff to serve his interests,” said the source.

Given the nature of the crime, the investigating police on Saturday consulted public prosecutors for advice on recording statements from senior LRO officials including Dhakal.

Going by existing rules, BFIs ask LROs to freeze transactions in land and housing that have been pledged as loan collateral. LROs can open transactions in such properties only after the BFIs concerned issue a clearance notice certififying that the property has been released from collateral and the owner is free to transact it whenever he wishes.

In both processes, a representative of the BFI concerned should be present in person at the LRO. However, this provision is rarely implemented, as most of the brokers personally carry such ´freezing and release´ request files to different sections to get the request implemented.

“We believe such laxity has greatly helped Paudel run his racket. This practice should be stopped instantly,” said an LRO official.

Source:myrepublica

1Ropani