KATHMADNU, JUL 28 -

Police on Wednesday arrested former chairman of Capital Merchant and Finance from Kupandol, Lalitpur.

The Central Investigation Bureau (CIB) of police detained 85-year-old Diken Raj Poudel for his alleged involvement in irregularities while sanctioning loans worth Rs 1.4 billion. Nepal Rastra Bank had asked the Home Ministry to nab officials involved in irregularities in Capital Merchant through the Finance Ministry.  An NRB investigation has found Poudel’s involvement in irregularities while lending to 10 projects. He has been accused of lending by creating fake projects.

CIB has said an action against him will be initiated under the articles 7, 8, 9, 12 and 14 of the Banking Offense Act-2007. Earlier, CIB had arrested Capital’s founder Amirjung Khadka and shareholder Januka KC. The NRB investigation has identified Pawan Kumar Karki as the main culprit in the scam. Sources said he has already fled abroad.