UML leader Mishra arrested in bank fraud case

Nepalgunj – The Crime Investigation Bureau (CIB) of Nepal Police has arrested Pashupati Shamsher Mishra, a central committee member of the UML and former chairperson of Karnali Development Bank, in connection with the alleged embezzlement of NPR 2.5 billion from the bank.

Mishra was detained in a public marketplace in Nepalgunj by a CIB team under the command of a DSP and supported by a dozen security officials. The arrest follows a comprehensive investigation into the bank’s operations, which revealed massive financial irregularities. The bank had been nationalized by Nepal Rastra Bank due to its failure to maintain minimum capital adequacy and growing non-performing loans.

Earlier arrests in the case include founding chairman Rajendra Bir Rai and finance chief Ved Prakash Thakuri, who were taken into custody after initial inquiries indicated misappropriation against the bank’s depositors.

According to CIB sources, the investigation first uncovered embezzlement worth NPR 1.26 billion. However, a deeper probe, aided by Nepal Rastra Bank’s forensic audit, revealed that the total misappropriated funds likely exceed NPR 2.5 billion.

Mishra entered politics via the Madhes Movement, was elected to the federal parliament under UML’s party symbol, and later ran for mayor of Nepalgunj Sub-Metropolitan City after formally joining UML.

Nepal Rastra Bank has established a custodial management team to oversee the bank’s operations, recover funds, initiate asset recovery, and assist with legal proceedings. The CIB’s action in Nepalgunj marks a key phase in a broader crackdown on high-level financial fraud within Nepal’s banking sector.