KATHMANDU: Prabhu Bank Limited’s Head of Remittance Department, Sugen (Sujit) Shakya, has been arrested on charges of additional involvement in banking offenses under the Banking Offense and Punishment Act, 2008.
He was taken into custody from Ikhachen, Lalitpur–11, on Wednesday after police obtained an arrest warrant from the Patan High Court. According to the Central Investigation Bureau (CIB) of Nepal Police, Shakya had unlawfully appointed Prabhu Management Pvt. Ltd. as a super agent and provided advance funds for remittance transactions.
Investigations show that even after the company’s remittance operations had been suspended, funds were made available in violation of Nepal Rastra Bank directives. CIB said these funds were misused by certain interest groups over an extended period, causing an estimated loss of more than Rs 89.3 million to Prabhu Bank.
The bureau further stated that Prabhu Bank CEO Ashok Sherchan has also been arrested for his alleged role in concealing the wrongdoing. He is accused of issuing loans and misusing credit processes to cover up the irregularities.
CIB said the legal provision for pre-funding in remittance services was exploited unlawfully, and the bank suffered losses exceeding Rs 1 billion as the required interest was not collected.
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