The Money Laundering Investigation Department has sought details from the founding shareholders of seven micro-insurance companies and Himalayan Re-Insurance about the purchase of shares at a premium over and above the face value.

The department issued a notice on Thursday, asking shareholders who purchased founder shares when Nepal Micro Insurance Company, Guardian Micro Life Insurance, Crest Micro Life Insurance, Liberty Micro Life Insurance, Protective Insurance Company, Star Micro Insurance Company, Trust Micro Insurance Company and Himalayan Re-Insurance to provide such details.

The department has asked the founder shareholders to submit details of the amount deposited in the bank accounts of various individuals and organizations as additional fees (premium) other than the amount paid to the company for paid-up capital, regardless of the amount, in whose name, with what number, in which bank and financial institution account, and which deposit was made. The department has given a deadline of 15 days for this.

‘In the case of the amount paid to the bank accounts of various individuals and institutions as additional fees (premium) by the founder shareholders who purchased the founder shares in the mentioned company at the time of obtaining permission from the Insurance Authority, apart from the amount paid to the company for the paid-up capital, all concerned are cordially requested to cooperate in the investigation by submitting the details of how much, in whose name, under what number, in which bank and financial institution account, and what deposit was made within 15 days from the date of publication of this notice to the office of the department,’ the notice issued by the department said.

The letter also revealed that the department is investigating the establishment of the mentioned company, the share distribution process, etc.

After obtaining permission from the Insurance Authority, Himalayan Re-Insurance Company was established in Jestha 2078 with a capital of 10 billion. In which the largest share investment is from Shankar Group and Bhatta.

Kantipur Media Group Chairman Kailash Sirohia is also one of the 111 founding investors of Himalayan Reinsurance. Sirohia had purchased one million shares (1 percent of the company's total shares) of Himalayan Reinsurance at a face value of Rs 100 by paying Rs 100 million. Nepal Bank Limited and Rastriya Banijya Bank have also bought founding shares of Himalayan Reinsurance.

Apart from Himalayan Reinsurance, on 11 Mangsir 2079, the Authority had granted permission to seven microinsurance companies, including Life Insurance 3 and Non-Life Insurance 4.

Accordingly, the life insurance sector includes Guardian Micro Life Insurance, Crest Micro Life Insurance and Liberty Micro Life Insurance. The non-life insurance sector includes Trust Micro Insurance, Nepal Micro Insurance, Star Micro Insurance and Protective Micro Insurance.

During the tenure of the then chairman of the Authority, Surya Prasad Silwal, licenses of seven micro-insurance companies and Himalayan Re-insurance Company were distributed.

Complaints were filed by various investigative bodies regarding the license distribution process and the sale of shares at a premium to the founding shareholders at that time by Bhatta and his group.

The Money Laundering Investigation Department is studying the controversial share transactions of Bhatta and Shankar Group Vice Chairman Sulabh Agrawal.