The High Court Tulsipur, Nepalgunj bench has ordered judicial custody for three individuals arrested in connection with a large-scale financial fraud at Karnali Development Bank Limited, which has its head office in Nepalgunj.
According to court information officer Bal Bahadur Bisht, the bench comprising Judges Chandrabahadur Saru and Poonam Singh Chand issued the remand order on Wednesday for the bank’s former Chief Executive Officer Rajendra Bir Rai, former Chairman Pashupati Dayal Mishra, and employee Bed Prakash Singh Thakuri.
Meanwhile, the court granted conditional release to Bhuvan Basnet, a former Nepal Rastra Bank employee who had been assigned to supervise the bank as an expert. He was released on a bail of NPR 200,000. Although hearings concluded around 2 PM Wednesday, the court order was issued around 8 PM.
Following an investigation by the Central Investigation Bureau (CIB) of Nepal Police, the District Government Attorney’s Office, Banke filed a case at the High Court’s Commercial Bench in Nepalgunj on Saun 14 (July 29). The CIB named a total of 109 individuals, including the three now in custody and one expert supervisor, as defendants in the case. The remaining 105 accused are reportedly at large.
The total embezzled amount in the case is estimated at NPR 3.2 billion (Rs 3,20,11,54,157.03). According to information officer Bisht, charges were filed against all 109 individuals for their alleged involvement in the massive financial scandal.
The government attorney’s office filed charges on Saun 14, and statements were recorded on Saun 15 and 16. Continuous hearings began from Sunday, with a total of 24 legal practitioners representing both prosecution and defense, said court officer Sant Bahadur Paudel.
As per the CIB’s investigation, former CEO Rajendra Bir Rai is accused of embezzling NPR 2.63 billion, former Chairman Mishra of NPR 824.6 million, and finance department head Thakuri of NPR 246.4 million.
Nepal Rastra Bank had declared Karnali Development Bank problematic on Poush 10, 2081 (December 25, 2024), and took over its management. A three-member management team, led by Deputy Director Tikaram Khatri from the Bank and Financial Institution Regulation Department, was formed to oversee its operations starting Poush 11.
The case was filed based on a formal complaint submitted by Jugal Kishor Kushwaha, a deputy director and authorized member of the central bank’s management team.
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