CIB Arrests Prabhu Bank CEO Sherchan, Two Senior Officials

The Central Investigation Bureau (CIB) of Nepal Police on Sunday, November 30, arrested Prabhu Bank CEO Ashok Sherchan along with two senior officials on allegations of involvement in banking offences. CIB spokesperson Shiv Kumar Shrestha said the arrests followed preliminary findings indicating possible violations of banking regulations.

The other arrestees are Deputy CEO Mani Ram Pokhrel and Chief Risk Officer Riwas Shrestha.

The CIB had earlier taken into custody Hemkumar Mahaju, a former shareholder of Prabhu Management Pvt Ltd and an assistant accounts chief. He was arrested on suspicion of fraud and for offences under the Nepal Rastra Bank Act, 2058.

On October 28, the CIB arrested Devi Prakash Bhattachan, former lawmaker and Chairperson of the Prabhu Group, on charges of misappropriating nearly Rs 980 million from more than a dozen cooperatives.

The allegations relate to financial embezzlement involving Prabhu Money Transfer and Prabhu Management Pvt Ltd. The two entities are accused of failing to reimburse cooperatives for remittances they had paid out.

Bhattachan, regarded as close to former Prime Minister KP Sharma Oli, had established Prabhu Management as a “super agent” for Prabhu Money Transfer. He had also appointed Kusum Lama as a key partner. Cooperatives nationwide, working as sub-agents, paid remittances to customers. The funds were allegedly diverted, leaving the cooperatives unpaid.

The CIB released Bhattachan on November 26 on the order of the government attorney. He was freed due to health concerns, with instructions that he must appear for investigation whenever required.

The headline and the first two paras have been updated with additional information.