Janaki Medical College head arrested for alleged bank loan misuse

Kathmandu—The Central Investigation Bureau (CIB) of Nepal Police has arrested Om Prasad Pandey, the head of Janaki Medical College, on charges of misusing bank loans.

The CIB team apprehended him on Wednesday from the college premises.

Pandey is accused of establishing a shell company named ‘Institute of Agriculture, Forest and Veterinary Sciences Pvt. Ltd.’ in Bardibas Municipality-6, Mahottari, and obtaining loans from Prabhu Bank. The police investigation revealed that the loans were approved by artificially inflating the collateral’s value without a detailed project report (DPR).

The police have alleged that Pandey repeatedly misused the loans by investing them elsewhere instead of using them for the designated purpose.

Pandey, a resident of Ratopul, Kathmandu Metropolitan City-9, is the chairman of the board of directors of Ram Janaki Health Foundation and the sole director of the aforementioned company.

CIB spokesperson Shiv Kumar Shrestha informed that Pandey was arrested after being on the run following an arrest warrant issued by the Patan High Court on 2082 Mangsir 28.