Nepalgunj, July 31: A case has been filed against 109 individuals in connection with an embezzlement scandal involving over Rs 3.2 billion at Karnali Development Bank, which has its central office in Nepalgunj, Banke.
The Office of the District Government Attorney in Banke filed the case at the Nepalgunj bench of the High Court, Tulsipur, on Wednesday based on the investigation report submitted by the Central Investigation Bureau (CIB) of Nepal Police.
According to court spokesperson Bal Bahadur Bista, four of the accused—including the bank’s founding chairperson Rajendra Bir Raya, former chairperson and founding member Pashupati Dayal Mishra, the bank’s head of the finance department Bed Prakash Singh Thakuri, and former Nepal Rastra Bank employee Bhuwan Basnet — have been arrested. The remaining 105 accused are at large.
The charge sheet states that the accused collectively caused a loss of Rs 3.2 billion to the bank. The individual liabilities include:
- Rajendra Bir Raya: Rs 2.63 billion
- Pashupati Dayal Mishra: Rs 824.6 million
- Bed Prakash Singh Thakuri: Rs 246.4 million
- Bhuwan Basnet: Rs 1.08 million
The case file spans over 1,087 pages. According to court sources, statements from the arrested individuals will be recorded starting Thursday, and legal proceedings will continue thereafter.
The CIB carried out the investigation while the suspects were held in custody at the District Police Office in Banke.
A large number of depositors have been waiting for their money back, however new bank management is providing them in installment with limited sum.
Earlier, a five-member special probe committee led by Dr. Pashupati Dayal Mishra had been formed on Poush 5 (December 20, 2024) to investigate the case. The committee submitted a preliminary report to the District Administration Office, District Police Office, and the Financial Supervision Department of Nepal Rastra Bank on Poush 8 (Deember 23, 2024).
Following the severity of the fraud, Nepal Rastra Bank declared Karnali Development Bank a “problematic financial institution” on Poush 10 (December 25, 2024) and took over its management.
Established in 22 years back on Falgun 2060 BS, Karnali Development Bank was the first development bank operating in the Mid and Far Western regions of Nepal. It has multiple branches across Banke, Bardiya, and Dang districts, including locations in Kohalpur, Khajura, Shamsherganj, Baijapur, Bansgadhi, Bhurigaun, Sanoshree, Gulariya, Thakurdwara, Rajapur, Tulsipur, Bijauri, Narayanpur, Ghorahi, Lamahi, Bhalubang, Gadhwa, and Sisahaniya. #bank #fraud
