Dev Kumar Nepali, the mayor of Dhorpatan Municipality in Baglung, has been handed over to District Police Office, Kaski.
Police Inspector Keshav Thapa said that Nepali was handed over to District Police Office, Kaski, on Sunday.
Nepali was arrested on the charge of misappropriating funds of Image Savings and Credit Cooperative Limited.
He is also the founding chairman of the cooperative.
The Baglung District Court had sent him to prison for investigation on September 30.
Nepali has been handed over to Kaski Police for investigation related to the Pokhara branch of Image cooperative as well as Suryadarshan Savings and Credit Cooperative. He is the board vice-chairman of Suryadarshan cooperative in Pokhara.
Kaski Police had written to Baglung Police a few days ago for investigation into misappropriation of the cooperatives’ funds.