Former chairman of Karnali Development Bank, Pashupati Dayal Mishra, has been arrested in connection to a major banking scam. He was taken into custody from Nepalgunj on Wednesday, according to CIB spokesperson SP Yuvraj Khadka.
Mishra’s Political Journey
Mishra, who rose to prominence through the Madhesh movement, had contested the 2074 parliamentary election from Banke-2 as an independent under the sun symbol but lost. Later, he joined CPN-UML and is currently a central committee member.
Third Arrest in the Case
This marks the third arrest in the case. Prior arrests include former finance head Dev Prakash Singh Thakuri and founding chairman Rajendraveer Rai. All are being held in Banke for investigation under the supervision of DSP Dan Thapa’s CIB team.
2.5 Billion Rupees Embezzled
Investigations revealed a financial irregularity of over Rs. 2.5 billion. Karnali Development Bank, established in 2060 BS, reportedly suffered losses due to internal embezzlement led by founding chairman Rai, who held about 80% of the shares and led the bank as executive chair and CEO for nearly 15 years.
High-Level Committee’s Conclusion
A special investigation committee led by current chairman Dr. Om Prakash Mishra concluded that a large-scale financial scam had indeed occurred. The investigation continues in coordination with Nepal Rastra Bank under the Banking Offense and Punishment Act 2064.
