Kathmandu – Rajendra Bir Raya, the founding chairman of Karnali Development Bank, has been arrested. According to SSP Hobindra Bogati of the Central Investigation Bureau (CIB) of Nepal Police, Raya was apprehended on Saturday at the Belahiya border point along the Nepal–India border.

The 65-year-old Raya is being taken to Banke for remand extension. Although the CIB stated he was arrested at the Nepal–India border, sources claim he was actually brought in from Indian territory.

Originally from Salyan, Raya had been residing in Nepalgunj Sub-Metropolitan City-20 of Banke district. He served as the CEO of Karnali Development Bank from 2019 to 2022 (Bikram Sambat 2076 to 2079). Raya has been accused of embezzling Rs. 4.90 billion. He went into hiding after the investigation process began.

An internal investigation by the bank revealed that former CEO Dinesh Kumar Rawat, head of the finance department Bed Prakash Thakuri, and Niraj Vikram Shah were also involved in the embezzlement.

The management of Karnali Development Bank, which has its central office in Banke, is currently under the control of Nepal Rastra Bank.