KATHMANDU: The Central Investigation Bureau (CIB) has launched an investigation into suspicious financial transactions linked to the bank accounts of Durga Prasai, who has recently been active in campaigns advocating for a Hindu state and the return of monarchy.
According to officials, Nepal Rastra Bank flagged irregularities in Prasai’s bank transactions and referred the matter to the CIB for investigation. Acting on the referral, the CIB obtained approval from the Kathmandu District Court to detain Prasai for questioning.
Prasai was arrested on Chaitra 28 following a violent royalist demonstration in Kathmandu’s Tinkune area and is currently in custody at the Kathmandu District Police Office.
He is under investigation for multiple charges including crimes against the state, organized crime, criminal unrest, and attempted murder. On Monday, police sought a second extension of his custody period.
In a parallel development, the Supreme Court on Monday issued an interim order directing authorities to unfreeze bank accounts of two hospitals associated with Prasai.
The accounts—belonging to B&C Medical College Teaching Hospital and Purwanchal Cancer Hospital—had been frozen by police as part of the ongoing investigation.
The order came after Dr. Anjali Karki, representing the hospitals, filed a writ petition against Nepal Police and the CIB.
The single bench of Justice Hari Prasad Phuyal granted the interim order and asked the defendants to provide written justification for freezing the accounts.
Prasai, who was reportedly arrested in Assam, India, had gone into hiding after the violent royalist protest on Chaitra 15, during which two people—journalist Suresh Rajak and transport worker Sabin Maharjan—were killed.
Protesters also vandalized vehicles, government offices, media houses, and a private residence in Tinkune. Following these events, Prasai’s personal and institutional accounts were frozen by authorities.
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