By Our Reporter
The police have arrested Kamal Gyawali, former managing director of then Kist Bank. He has been absconding since 2016 after being convicted of financial crime.
Kist Bank was part of a mega merger between multiple banks to form Prabhu Bank.
He was on the run after the Patan High Court handed a four-year jail term and a Rs.125 million fine to him in 2016 for his involvement in financial fraud. He had taken Rs.120 million in loan from Siddhartha Development Bank by putting up substandard collateral.
A team from the Metropolitan Crime Division of the Nepal Police on Friday morning arrested Gyawali from Kanchanpur and brought him to Kathmandu.
In 2010, Gyawali and his wife Gauri Khanal took a Rs.120 million loan in the name of Jamko Publication from the development bank against a collateral worth Rs. 60 million by influencing its top management. A year later, an on-field inspection by Nepal Rastra Bank (NRB) uncovered the fraud, and the central bank handed over the case to the Crime Investigation Bureau (CIB) of the Nepal Police for further investigation.