In the Karnali Development Bank scam, a major financial fraud case, the Central Investigation Bureau (CIB) has arrested Bhuwan Basnet, a former employee of Nepal Rastra Bank (NRB), for his alleged involvement in a Rs. 4.90 billion scam at Karnali Development Bank.
Basnet was taken into custody on Friday from Tokha, Kathmandu. According to CIB sources, he approved a report stating the bank was in stable financial condition, despite serious issues. At the time, Basnet was working as a monitoring officer.
Karnali Development Bank, headquartered in Banke, is facing serious allegations of financial misconduct. CIB believes more individuals could be arrested as the investigation unfolds.
Earlier, CIB had sent a letter to NRB requesting details of the officials involved in monitoring the bank. The investigation has already led to the arrest of several high-profile individuals:
- Rajendra Bir Rai, founding chairman (arrested in India)
- Pashupati Dayal Mishra, former chairman and UML central committee member
- Dinesh Kumar Rawat, former CEO
- Bed Prakash Thakuri, finance head
- Neeraj Vikram Shah
Authorities have confirmed that Basnet will be transferred to Nepalgunj for further investigation.
