Kathmandu. The then Chief Executive Officer of Karnali Development Bank (CEO) has been arrested. The then CEO of the bank, Neeraj Bikram Shah, has been arrested in connection with a case related to financial irregularities and bank.

According to the District Police Office, Banke, CEO Shah was arrested from Nepalgunj. 

According to the police, the police have arrested the CEO Shah and his wife Shubheshcha Shrestha and Deepa Th apa, the then branch manager of Karnali Development Bank Nepalgunj branch. 

The police have already arrested some people in connection with the case, while some of the defendants are still absconding.TheRastra Bank had declared Karnali Development Bank and Karnali Development Bank on December 26 after it was found to be a big financial fraud in the bank. 

The Central Investigation Bureau (CIB) had initiated an investigation into the scam in the bank after it was found that a huge loan was disbursed without collateral and millions of rupees was given at overvaluation.During the investigation, the CIB has concluded that more than Rs 3 ..20 billion has been embezzled in the bank. 

The CIB has named 109 persons as defendants in the case related to the banking case registered at the High Court High Court in Talusipur. The arrestees have been identified as Rajendra Bir, founder chairman of the bank, Pashupati Dayal Mishra, founder member and former chairman of the bank, Pashupati Dayal Mishra, chief of the finance section of the bank Singh Thakuri and Bhuwan Basnet, a former employee of Rastra Bank.