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KATHMANDU, Nov 7: Veteran businessman Roop Jyoti has been arrested on Thursday evening.
A team of police from the Metropolitan Police Range Kathmandu detained him from the Tribhuvan International Airport at around 8 pm shortly after he returned from Singapore, police said.
Jyoti was held for his alleged involvement in the housing procurement scam in the capital, according to police sources.
"We are launching probe into the scam," Hobindra Bogati, spokesperson at the Metropolitan Police Range Kathmandu told Republica Online on Thursday evening without divulging details into the case. Bogati confirmed the arrest.
In December last year, police had issued an arrest warrant against Jyoti on a complaint that he had swindled a customer in a housing project.
The vice chairman of the Jyoti Group, a renowned business group in Nepal, has been accused of duping people while selling housing in Kathmandu.
The case was filed by Bikendra Krishna Malla. Malla complained that he had paid a total of Rs 27.6 million in different installments for a house at Basbari, Budhanilakantha to Landmark Developers Private Limited but no house had been provided. The company was established by Jyoti. However, he has been denying that he owns the company.
The housing project was developed by CE Construction Private Limited. According to police, Malla and Jyoti had previously agreed to resolve the dispute but Malla later backed away.
Kathmandu District Court had allowed the police to arrest him for allegedly duping people through housing business. Subsequently, he moved the Supreme Court (SC) seeking to vacate the order. However, the SC issued the interim ruling not to arrest him on the case.
Almost after one year today, the apex court vacated the interim order while paving the way for Kathmandu police to arrest him and launch investigation into the case.
The Jyoti Group of companies offers a diverse range of products and services, from core industries such as iron, steel and textile yarn to finance and travel related services, according to a company profile.
Jyoti served as the assistant finance minister during the direct regime of Ex-King Gyanendra Shah in 2005.