CIB Concludes 111 Individuals Should Be Prosecuted in Karnali Development Bank Rs 3.25 Billion Embezzlement Case

Summary:
The Central Investigation Bureau (CIB) of Nepal has concluded that 111 individuals should be prosecuted in connection with the Karnali Development Bank embezzlement case involving over Rs 3.25 billion. The CIB submitted its investigation report to the Office of the Attorney General, which is preparing to file a case at the Banke District Court.

Key points:

• The embezzlement amounts to about Rs 3.25 billion.
• Four prominent individuals, including former bank chairman Dayal Mishra, finance chief Devprakash Singh Thakuri, and founder chairman Rajendra Veer Rai, have already been arrested.
• Former Nepal Rastra Bank official Bhuvan Basnet was recently arrested after suspicious transactions were found in his personal account linked to the bank.
• Many accused are bank employees, directors, and loan defaulters.
• The bank was found to have used fake balance certificates and manipulated records to hide losses.
• Rajendra Veer Rai, a major shareholder with around 80% ownership and former CEO, was arrested in Lucknow, India. He is also a former Member of Parliament affiliated with UML.
• The investigation revealed fake balances in accounts and fraudulent clearing of checks despite no real funds.
• The bank was established in 2003 (2060 BS) and the irregularities span several years.
• The Attorney General’s office is currently reviewing the report before formally registering the case.

In summary, this case involves large-scale financial fraud at Karnali Development Bank implicating senior officials and others, with a significant amount of money embezzled and multiple arrests made.

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