The Kathmandu District Court has granted police permission to keep Arjun Kumar Karki, former secretary of the Nepal Trust, in custody for four days for investigation. Karki is one of the key accused in a land lease agreement at Durbar Marg that allegedly caused billions in losses to the state.
The Central Investigation Bureau (CIB) of Nepal Police detained Karki on Sunday evening to investigate charges related to fraud and criminal breach of trust. According to CIB spokesperson Shiva Kumar Shrestha, the court approved a four-day extension of custody to continue the inquiry.
Investigations have revealed that the Trust’s land was leased to Thamserku Trekking Pvt. Ltd., under the Omni Group, through collusion, causing long-term financial damage to the state. Earlier, on Kartik 21, the CIB arrested then joint-secretary Lekh Bahadur Karki in connection with the same case. Evidence obtained during his interrogation pointed to the direct involvement of former secretary Arjun Kumar Karki, leading to his arrest.
CIB officials suspect that former Trust officials, intermediaries, and key government personnel colluded for personal financial gain while signing the agreement. The deal allegedly involved leasing not only the land listed as plot number 4606 but also additional plots, indicating fraudulent intent.
The agreement, signed on Jestha 14, 2074 BS, reportedly granted a 33-year lease under a “Build, Operate, Transfer” arrangement—three years for construction and 30 years of operation—at an unusually low rate, causing massive long-term loss to the state.
The CIB has stated that beneficiaries, facilitators, and involved officials illegally profited through fraud and criminal breach of trust.
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