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85 (e) If any agreement or transaction, other than those regular banking or financial transactions permissible under this Act, is found to have been made, (f) If contract has been made for providing employment to the relevant persons. (4) In case any bank or financial institution is subjected to mandatory liquidation, the following transactions shall be null and void:- (a) Preferential transactions made immediately before six months of the initiation of the process of mandatory liquidation or within the period of six months after initiation of the process, (b) Preferential transactions made with the relevant persons immediately before one year of initiation of the process of mandatory liquidation or within the period of one year after initiation of the process, (c) The bank or financial institution is subjected to mandatory liquidation as a result of any transaction made with low price immediately before one year of the initiation of the process of mandatory liquidation and other transactions with low price made within one year after initiation of the process; (d) Fraudulent transactions made immediately before two years of the initiation of the process of mandatory liquidation or within the period of two years after initiation of the process; (5) The Liquidator shall have to file an application to the court to get the transactions referred to in Sub-Section (4) invalidated. (6) In case the court is satisfied about invalidity of any transaction, the court may issue the following order:-.

86 (a) To issue order the concerned person to pay to the Liquidator all or some of the amount the payment of which has been made by the bank or financial institution with regard to such transactions, (b) To issue order the concerned person to handover the assets so transacted or to pay the value equivalent to thereof to the Liquidator, (c) To issue order to exempt or release, fully or in part, the credit the bank or financial institution has availed, the security or collateral pledged by the bank or financial institution against that credit, (d) To issue order to invalidate, inactivate or declare as non- implementable the agreements between the bank or financial institution and another person executed for pardon or surrender, (e) If additional order is required to be given for execution of the order under this Sub-Section, the court shall issue such an order as well. (7) In case any Director, official, employee or any other person is found to have committed the acts referred to in Sub-Section (3) or (4) and the bank or financial institution has been facing any loss or damage, they shall be liable to bear the compensation personally for such loss or damage. 84. Records of Assets and Liabilities: (1) The Liquidator shall have to immediately prepare a record of the assets, liabilities or potential liabilities of the bank or financial institution being in mandatory liquidation as per this Act and one copy of it shall be submitted to the Rastra Bank and one copy shall be retained at the concerned bank or financial institution. (2) The record to be prepared pursuant to Sub-Section (1) shall have to include the following details:-.

87 (a) Liabilities towards the depositors and creditors of the bank or financial institution, (b) Entire assets and all types of liabilities of the bank or financial institution, and its estimated costs, (c) Contracts the bank or financial institution has entered into for procuring services, (d) Significant transactions the bank or financial institution has made before six months of the date of the order issued for mandatory liquidation. (3) The record referred to in Sub-Section (1) shall have to be updated in every trimester and be made available when desired to inspect by the creditors. 85. Transactions may be terminated: (1) The Liquidator may terminate the following transactions of the bank or financial institution within six month of the date of order issued by the court for mandatory liquidation of the bank or financial institution:- (a) Any contract concluded by the bank or financial institution concerning employment, (b) Any contract concluded for any services involving the bank or financial institution as a party, (c) All functions and contracts being carried out by the bank or financial institution as in the capacity of a trustee, (d) Any regular functions or business of the bank or financial institution or branches of bank or financial institution according to need and circumstances, (e) Any liabilities said to be borne by the bank or financial institution without any limit, (f) Other functions or proceedings as prescribed by the Rastra Bank. (2) For the transactions terminated pursuant to Sub-Section (1), no any type of additional amount or compensation may be claimed other than the due amount to.

88 be paid or liability to be borne by the bank or financial institution till the date of termination of the transaction. 86. Notice to submit claims: Upon initiating the process of mandatory liquidation of a bank or financial institution, the Liquidator shall, within the time prescribed by the Rastra Bank, have to publish a notice containing the following details asking the persons having any claim of any type with the bank or financial institution to submit his/her details of claim within one month from the last date of publication of the notice stating his/her claims and the amount he/she may receive in a clear manner:- (a) To publish a notice in daily Nepali and English languages newspaper of national level, (b) To publish such notices at the main places of businesses of bank or financial institution and post it at every offices in a conspicuous manner. 87. Liquidator may accept or reject claims: (1) The Liquidator shall, within 90 days from the date of submission of the claim pursuant to Section 86, inquire into the claims and accept or reject the claim fully or partially based on the evidences available and information thereof shall be given to the claimant and public notice thereof shall also be published. (2) The claimant having his/her claim partially accepted or rejected pursuant to Sub-Section (1) shall, within 15 days from the date of publication of notice thereof, have to submit his/her claims again enclosing the additional evidences, if any. (3) In case there is the need of any change in the claims made pursuant to Sub-Section (2), the Liquidator may change it partially or wholly. (4) In case the claimant is not satisfied with the decision of the Liquidator made pursuant to Sub-Section (1) or (3), the claimant may file an appeal at a court within 21 days of receiving the decision sent by the Liquidator.

89 88. Classification of Claims: (1) The claims accepted, partially accepted or rejected pursuant to Section 87 shall have to be recorded separately with segregation it in different title. (2) The claims partially accepted pursuant to Sub-Section (1) shall have to be included in the accepted list and the rest of the claims shall have to be included in the list of rejected claims. (3) While preparing list of claims, name and address of the claimant, place, date and amount of payment and whether or not collateral is there for securing the claim shall have to be clearly stated. (4) If there is dispute as to a claim, such claim shall have to be stated in the list of disputed claims until decision is made. (5) The Liquidator shall have to enlist the approved claims and the claims having no value fixed in the list as he/she has prescribed. (6) The claims of the secured creditors shall have to be separately classified. (6) The approved claims shall have to be listed so as to placing it on priority in the payment process. 89. Meeting of Creditors: (1) The creditors of the bank or financial institution having its mandatory liquidation process initiated may form a Meeting of Creditors for mutual discussions and consensus. (2) Subject to the directives given and conditions as prescribed by the Rastra Bank, the Liquidator of the bank or financial institution subjected to mandatory liquidation may have discussions and build consensus as may be necessary with the creditors and borrowers of such bank or financial institution..

90 89. Liquidation Plan:(1) The Liquidator shall, within 30 days after completion of classification of the claims pursuant to Section 88, prepare detail plan of action of the liquidation of the said bank or financial institution and submit it to the court for approval and information thereof shall have to be given to the Rastra Bank as well. (2) The following matters shall have to be incorporated in the liquidation plan to be submitted pursuant to Sub-Section (1):- (a) Details description of the assets and liabilities of the bank or financial institution and its nature and quantity, (b) The past and projected income and expenditure of the bank or financial institution, (c) Detail description as to whether to continue the current financial transactions of the bank or financial institution or to revoke them, (d) Decision or order of the court, (e) Details of the actions taken for compensation from the Director, official or employee for the offences and other unlawful acts they have committed, (f) Details description as to classification of claims and priority order of payment, (g) Plan of sale and liquidity of the main asset or group of assets of the bank or financial institution, (h) Liabilities of the bank or financial institution and table of details of the probable payment to be made to depositors and creditors within the upcoming 90 days, (i) Costs and expenses of the mandatory liquidation, (j) Other details as prescribed by the Rastra Bank. (3) The Liquidator shall update the liquidation plan to be made pursuant to Sub-Section (1) in quarterly basis..

91 (4) Once the liquidation plan is approved by the court, the plan shall have to be made available to the creditors of the bank or financial institution for inspection, whose claims are stated in the plan. (5) Notwithstanding anything contains in this Act elsewhere, no bank or financial institution, which has been subjected to mandatory liquidation, shall be recapitalized by making full or partial financing. 91. Advance Payment may be made to Depositors Immediately: (1) Notwithstanding anything contained elsewhere in this Chapter, the depositors of the bank or financial institution subjected to mandatory liquidation may be distributed up to one hundred thousand rupees per account as an advance with a condition to settle the account at the time of payment of the deposit. (2) The amount advanced payment pursuant to Sub-Section (1) shall be adjusted while making payment pursuant to Section 94. 92. Powers to sell Assets: The Liquidator may, subject to the directives given by the Rastra Bank, cause auction of the entire assets of the bank or financial institution including the assets mortgaged as collateral security of the approved secured claim of the creditors bank or financial institution as follows:- (a) At the place of transaction of the securities, foreign currencies or other assets that may be sold easily in the market, (b) The securities given for security of the loan of creditor, foreign currencies or other assets that may be sold easily in the market by the creditors, (c) In case the Liquidator deems that no reasonable value could be received by auction of assets, to sell it in any manner, (d) To make other provisions as prescribed by the Rastra Bank. 93. Notice of Settlement of Claims: The Liquidator shall, in order to settle the claims according to the liquidation plan as referred to in Section 90, publish and broadcast.

92 public notice stating the nature, quantity and priority order for payment of the claims. 94. Order of Priority for Payment: (1) The bank or financial institution subjected to mandatory liquidation shall have to pay its liabilities in the order of the following priority:- (a) Expenses incurred for mandatory liquidation, (b) Amount upto the amount paid for deposit security/insurance made as per the prevailing laws subject not to exceed the limitation of total approved claimed amount of the depositor or the amount equivalent to the paid amount, if payment has been made to the security/insurance organization incorporated as per the prevailing laws for security of deposit, (c) The deposits remaining after payment made pursuant to Clause (b), (d) Salary, allowances and amounts for other liabilities payable to employees of the bank or financial institution, (e) Amount payable to Government of Nepal, local bodies, and the Rastra Bank, (f) Outstanding amounts payable to other bank or financial institutions as fees or valuation amount, (g) Amounts payable for other creditors and other claims; (h) Shareholders according to the prevailing laws. (2) Notwithstanding anything contained elsewhere in Chapter, in case any creditor submits an application agreeing to accept any of the assets that was not sold while auctioning pursuant to Section 91 in lieu of the amount which the bank or financial institution has to pay him/her, the Liquidator may transfer such assets to such creditor having fixed the value of such assets subject to the norms determined by the Rastra Bank..

93 (3) Notwithstanding anything contained elsewhere in Chapter, in case any asset has been pledged as security for the secured creditors, such asset shall be used only for fulfilling the liability towards them. 95. Unclaimed Goods or Amount: While notice has been issued under this Chapter to receive the amount or goods according to details of the claims or liabilities, if the concerned person does not come to receive the amount or goods within the specified time, such amount or goods shall have to be kept under the responsibility of the Liquidator or other body as according to the direction given by the Rastra Bank. 96. Decision of Liquidation: (1) The Liquidator of the bank or financial institution subjected to mandatory liquidation or having its license revoked by the Rastra Bank shall have to submit an application before the court for liquidation after completion of function of liquidation along with details of the activities performed. (2) In case the Liquidator submits an application to the court pursuant to Sub-Section (1), the court shall inquire on it as may be necessary and may decide that such bank or financial institution has been subjected to mandatorily liquidation. (3) The Liquidator shall have to publish the decision given by the court pursuant to Sub-Section (2) in each national level newspaper of Nepali or English language at least once and while publishing in such manner, main points in the order of the court and in the liquidation report shall have to be mentioned. (4) Upon publication of the notice pursuant to Sub-Section (3), the Liquidator shall request the Office of the Company Registrar to remove the name of the bank or financial institution from the list of registration of companies and the Office of the Company Registrar shall publish the notice of removal of the name of the bank or financial institution from the Companies Registration Book in the Nepal Gazette accordingly..

94 (5) The process of mandatory liquidation of the bank or financial institution shall be completed after removal of the name of the bank or financial institution subjected to mandatory liquidation after publishing notice thereof in the Nepal Gazette pursuant to Sub-Section (4) and such bank or financial institution shall be deemed to have been duly dissolved. (6) If there is any liability of a Director, Chief Executive, official, employee or shareholder of the bank or financial institution or other person under this Act or other prevailing Nepal laws, the mandatory liquidation of the bank or financial institution shall not absolve them from their respective liability. 97. Mandatory Liquidation of Bank or Financial Institution carrying on transactions in more than one Country: Process of the mandatory liquidation of the branch of bank or financial institution carrying on transactions in more than one country shall be as determined by the Rastra Bank by giving due consideration to best international practices. Provided that, mandatory liquidation of the bank or financial institution engaged as subsidiary company of the bank or financial institution working in more than one country shall be according to this Chapter. 98. No claim to be entertained: The creditor or other person who does not submit the claim within the time prescribed while publishing notices for the same pursuant to Section 86 shall not be entitled to make the claim thereafter. Provided that in case of the amount in depositor's account, there shall be no affect in his/her right for the reason of absence of the claim. Chapter-13 Provisions on Actions, Offences and Punishment.

95 99. Regulatory Actions may be taken: (1) In case a bank or financial institution is found to have violated this Act, the Rastra Bank Act, or Rules, Directives, Orders issued thereunder, the Rastra Bank may, depending upon the nature and gravity of the violation, take one or more of the following actions against the bank or financial institution:- (a) To make aware or issue warning in writing, (b) To cause the Board of Directors to enter into deed of commitment for taking reformative steps, (c) To issue order in writing not to violate this Act or Rastra Bank Act or Rules, Byelaws, Directives or Order framed thereunder or to take reformative steps, (d) To prohibit distributing dividend or issuing bonus shares to the shareholders of bank or financial institution or to prohibit acts of distributing dividends or issuing bonus share, (e) To specify limits on, or prohibit, accepting deposits or disbursing credits or the act of accepting deposits or disbursing credits by bank or financial institution, (f) To impose complete or partial ban on transactions of bank or financial institution. (2) The Rastra Bank may suspend or revoke the license to carry out banking or financial transactions issued to a bank or financial institution in following circumstances:- (a) In case banking and financial transactions are not initiated within six months from the date of obtaining the license for carrying on banking and financial transactions, (b) In case banking and financial transactions have been closed without obtaining approval from the Rastra Bank,.

96 (c) In case of operation of banking and financial transactions against interests of depositors or demanded or matured deposits are not repaid or could not be repaid while on-demand, (d) In case of violation or non-compliance of the Rastra Bank Act, this Act, and the Rules, Byelaws, Orders, Directives framed thereunder or the terms and conditions as prescribed by the Rastra Bank, (e) In case the bank or financial institution is found to have taken license having submitted false description, (f) In case the deposits have not been guaranteed as per the prevailing laws. (3) In case a promoter, shareholder, Director, Chief Executive, official, employee or any other relevant person of a bank or financial institution violates this Act or Rastra Bank Act, or Rules, Byelaws, Directives or Orders issue thereunder, the Rastra Bank may, having regard to the nature and gravity of the violation, take one or more of the following actions and impose fines as well:- (a) To forfeit and freeze the shares of the concerned bank or financial institution as he/she has subscribed and to direct the Board of Directors to sell the said shares to other persons, (b) To direct the Board of Directors to stop or suspend some or all of the facilities including meeting allowance, monthly remuneration to be entitled to Board of Directors, Director, official, employee or any other relevant person of a bank or financial institution, (c) In case the Chairperson, Director, Chief Executive or the person to act as in the capacity of the Chief Executive or an employee is, upon an inspection or monitoring of the Rastra Bank, not found to have worked in the interests of depositors, shareholders, and.

97 licensed institution, he/she may be removed from the said position by furnishing a written notification to that effect. Provided that while taking actions under this clause, a time limit of three to fifteen days shall be given to such person to submit explanations of allegation. In case such a person is terminated from the service, he/she shall not be entitled to any compensation or benefits as referred to in the Personnel Byelaws and he/she shall be deemed to be disqualified for service in any bank or financial institution for a period of five years after such actions. (d) In case the director, official or other employee subjected to actions does not receive the letter of taking actions or does not submit the explanation after receiving the letter while taking actions pursuant to Clause (c), the Rastra Bank may inform the taking of actions against through public notice, (e) In case any bank or financial institution is found to have taken or given remuneration or other facilities against this Act or in an unnatural manner, to recover all of such facilities or the amount to be required for such facilities and the interests to be accrued thereon from the person gives such facilities, (f) To issue order to the bank or financial institution to write to the concerned agency to take action against a Director, official or employee of the bank or financial institution where he/she is professionally affiliated. (4) In case the amount to be paid by a bank or financial institution has been found to have been paid or incurred because of recklessness or negligence of any Director, official or employee, the Rastra Bank may issue order to recover the amount from such director, official or employee. (5) The Director, official or employee shall have to pay such amount on personal basis within 35 days from the date of receiving order issued pursuant to Sub-Section (4)..

98 (6) In case the amount payable within the time limit as referred to Sub- Section (5) is not paid, said amount shall be recovered from any account of such Director, official or employee or in any family member’s name at any bank or financial institution or from any movable or immovable assets in his/her name or in any family member’s name, as the Government due. (7) In case the Rastra Bank carries out regulation, inspection, supervision or any other actions of any bank or financial institution under this Section and publishes or broadcast public notices thereof, the concerned bank or financial institution shall have to pay the expenses to be incurred for publishing or broadcasting such notices. 100. Fines may be imposed: (1) The Rastra Bank may impose the following fines against the bank or financial institution which does not give information or documents to be given according to the this Act or Rastra Bank Act, or Rules, Byelaws, Directives or Orders issued thereunder; or which does not make available within the prescribed time the documents, description, statistics, or record as required by any officer deputed by the Rastra Bank for monitoring, inspection or supervision of the said bank or financial institution:- (a) Daily one hundred thousand rupees up to one week from the date of expiry of the term, (b) Daily one hundred twenty five thousand rupees up to two weeks from the date of expiry of the term, (c) Daily one hundred fifty thousand rupees from the date of expiry of the term referred to in Clause (b) up to indefinite period of time. (2) In case a Promoter, Director, Shareholder, Chief Executive, official, employee of a bank or financial institution or any other related person violates this Act or the Rastra Bank Act or the Rules, Byelaws framed thereunder or the Directive or Order issued thereunder, or fails to implement the directive issued by Rastra Bank pursuant to Clause (b) of Sub-Section(3) of section 99, the Rastra Bank may.

99 impose a fine up to one million rupees having regard to the nature and gravity of the violation. (3) In case the bank or financial institution having been imposed the fines pursuant to Sub-Section (1) does not pay the fine within three days from the date of receipt of information of the decison, the said amount shall be recovered by deducted from the amount deposited in the account of the said bank or financial institution opened at the Rastra Bank. (4) The cash fine to be received to the Rastra Bank pursuant to Sub-Section (1) and (2) shall be deposited to the Government fund. 101. Procedures of Actions: Except otherwise provided in this Act, the Rastra Bank shall follow the procedures as mentioned hereunder while taking actions pursuant to Section 99 and imposing fines pursuant to Section 100:- (a) Before taking the proposed action or imposing fines, the alleged bank or financial institution or person shall be given a written notice of seven days to defend its/his/her position, stating the nature of the act he/she has committed, short description of the act, the amount that may be imposed as fines and the proposed actions. (b) The concerned bank or financial institution or person shall have to submit clarification in written form within seven days from the date of receiving written notice pursuant to Clause (a). (c) If the written clarification submitted pursuant to Clause (b) is found to be satisfactory, the Rastra Bank may amend to, delimit or dismiss the charge. (d) If the written clarification submitted pursuant to Clause (b) is not found to be satisfactory, the Rastra Bank may take action pursuant to Section 99 or impose fine pursuant to Section 100..

100 (2) Other procedures to be complied with while taking actions or imposing fines by the Rastra Bank shall be as prescribed by the Rastra Bank. 102. Control over the Licensed Institutions: (1) Notwithstanding anything contained elsewhere in this Act, if the Rastra Bank believes that a licensed institution has violated the this Act or Rastra Bank Act or the Rules or Byelaws framed hereunder or the Orders or Directives issued hereunder or is satisfied, on the basis of the inspection and supervision report of the Rastra Bank, that a licensed institution has failed or is likely to fail to perform the obligations required to be performed by the licensed institution or that a bank or financial institution has not been operated smoothly or has carried out anything contrary to the interests of its shareholders or depositors, the Rastra Bank may suspend the Board of Directors of such licensed institution for a period of maximum three years and take such bank or financial institution under own control. (2) After taking any licensed institution under its control pursuant to Sub- Section (1), the Rastra Bank may either itself or through any appropriate person, firm, company or institution appointed by it, carry out the management of such bank or financial institution. (3) The Rastra Bank shall, within one year after the management of licensed institution has been carried out by itself or through any other person, firm, company or institution pursuant to Sub-Section (2), conduct or cause to be conducted financial and management audit of such institution and publicly publish a report thereof. (4) If the Rastra Bank is satisfied, from the report referred to in Sub-Section (3), that the concerned licensed institution has become capable of performing the liabilities required to be performed by it or that the institution has reached a stage of operating smoothly, the Rastra Bank may take the following actions:-.

101 (a) To remove the suspension of the Board of Directors of the licensed institution made pursuant to Sub-Section (1) and handover the management of the institution again to that Board of Directors, or (b) To dismiss the Board of Directors of the licensed institution which has been suspended pursuant to Sub-Section (1), form a new Board of Directors from amongst the shareholders of the licensed institution and handover the management of that institution to the new Board of Directors, or (c) To convene the General Meeting of the licensed institution, get a new Board of Directors formed by the Meeting, and handover the management of the institution to the Board of Directors, or (d) To take any other action as the Rastra Bank deems appropriate. (5) If the Rastra Bank is satisfied, from the report referred to in Sub-Section (3), that the concerned licensed institution has become incapable of performing the liabilities required to be performed by it or that the institution has reached a stage of not being operated smoothly, the Rastra Bank may take any of the following two actions:- (a) To initiate the process of mandatory liquidation according to the provisions made in Chapter 12 of the Act, or (b) To initiate the process of settlement according to the Rastra Bank Act. (6) The Rastra Bank shall, prior to taking a licensed institution under its control pursuant to Sub-Section (1), give an opportunity to the concerned bank or financial institution to defend itself, by providing it with a time-limit not exceeding 15 days, having regard to the situation..

102 (7) The concerned licensed institution shall bear all expenses incurred by the Rastra Bank in every act and action taken by it after taking such institution under its control pursuant to this Section. (8) The Rastra Bank shall have to inform Government of Nepal, Ministry of Finance about the taking of any licensed institution under its control pursuant to Sub-Section (1). 103. Offences: (1) Whoever commits any of the following acts in contrary with this Act or the Rules, Byelaws, Directives, Orders issued under this Act or terms or limitation as prescribed shall be deemed to have committed an offence under this Act:- (a) Carrying out banking and financial transactions without obtaining license, (b) Obtaining license for carrying on banking and financial transactions submitting wrong or false statements, (c) Carrying out banking and financial transactions against the terms and limits of the license for carrying on banking and financial instruments, (d) Carrying out foreign currency exchange related business without license, (e) Disbursing credits or other financing against this Act, (f) Committing irregularities while carrying out valuation in artificial price while disbursing credits, recovering credits, valuating securities, recovering loan or carrying out any act relating thereto, creating artificial price while auctioning the assets pledged as collateral, or while accepting the property as non-banking assets or while selling by accepting non-banking assets or while taking collateral,.

103 (g) Committing irregularities by any Director, official, employee and other person while carrying out merger and acquisition, liquidating, or auditing, (h) Attempting to commit in the offence referred to in Clauses (a) to (g) or abetting to the commission of such offence by any manner. (2) Except in cases where a Director, official or any other person abetting in commission of the offence referred to as Sub-Section (1) proves that he/she had tried his/her best effort to avoid committing such offence or that it was committed without his/her consent, the offence is deemed to have been committed by himself/herself. (3) Except in connection with regular transaction of the branch, in case an official or employee of a branch of a foreign bank transfers assets of such branch to another country, grants approval therefor, delegates authority to that effect, or abets the commission of such an act, it shall be deemed to be an offence under this Act. 104. Punishment: (1) Any person who commits any of the following offenses shall be liable to the following punishment:- (a) In case of commission of the offence as referred to in Clause (a) of Sub-Section (1) of Section 103, the amount involved shall be confiscated and the offender shall be punished with the fine up to three times of the amount involved and an imprisonment up to five years, (b) In case of commission of the offence referred to in Clause (b) of Sub-Section (1) of Section 103, the amount involved shall be confiscated and the offender shall be punished with a fine up to two times of the amount involved and an imprisonment up to two years,.

104 (c) In case of commission of the offence referred to in Clause (c), (d), (e), (f) or (g) of Sub-Section (1) of Section 103, the amount involved, if any, shall be confiscated and the offender shall be punished with a fine equal to the amount involved and an imprisonment up to one year, (d) In case of commission of the offence referred to in Clause (h) of Sub-Section (1) of Section 103, the amount involved, if any, shall be confiscated and the offender shall be punished with half of the punishment to be imposed to the principal offender. (2) While ascertaining the amount involved for the purpose of Sub-Section (1), the amount shall have to be calculated having taken into account to the entire amount involved. (3) While imposing fines for the offences as referred to in Clause (a) to (e) of Sub-Section (1), if the claimed amount is revealed, the fines shall be imposed accordingly and if no such amount is revealed, the amount from one million to five million has to be fined. (4) In case of commission to the offence as referred to in Sub-Section (3) of Section 103, the offender shall be punished with the fine equivalent to the involved amount and an imprisonment upto five years. (5) In case an offence as referred to in Section 103 is committed by any firm, company or corporate body, punishment according to this Section shall be imposed on the concerned Director, official, employee or concerned person of the concerned firm, company, or corporate body and if such concerned person could not be ascertained, the punishment shall be imposed on the chief of the firm, company, or corporate body..

105 (6) In case anyone is found to have been committed in any offence as referred to in Section 103 and the proceeds of the offence is found to have been kept or concealed in name of himself/herself, any member of family or relative or in name of anyone else, such property and the property accrued therefrom shall also be confiscated. 105. Appeal: (1) The bank or financial institution or a Director, official or employee thereof which/who does not satisfy with the actions taken by the Rastra Bank pursuant to Section 99 or punishment imposed pursuant to Section 100, may file an appeal at the court within 35 days from the date of getting order of such actions. Provided that while filing an appeal against an action taken pursuant to Section 99 or punishment imposed pursuant to Section 100 on a bank or financial institution by any shareholder, it has to be filed by the representative of the shareholders representing at least 25 percent of the paid up capital of the bank or financial institution. (2) In case any Director, official, employee or any other person desires to file an appeal pursuant to Sub-Section (1) against the personal actions or fines, fifty percent of the amount of such fines or any amount as given order to pay must be deposited. (3) The Director, official or employee of any bank or financial institution who is removed or dismissed from the office shall not be eligible to become a Director, official or employee of any other bank or financial institution until a period of five years is expired from the date of such taking of actions or until the final decision of the case, if he/she has filed an appeal. 106. No obstruction to Punishment: In case any person is found to have been committed in any offence as referred to in Section 103 while holding any position of a bank or financial institution, there shall be no obstruction to take actions against him/her for the reason of his/her retirement or non-holding of the position..