The Central Investigation Bureau (CIB) of Nepal Police has taken Rashmi Pant, former chief business officer (CBO) of Prabhu Bank, into custody.
CIB spokesperson and Senior Superintendent of Police (SSP) Anupam Shumsher JBR said that Pant was taken into custody on Wednesday from Tinkune, Kathmandu, on banking offense charges.
"She has been detained for investigation into a banking offense. The process of obtaining an extension of her remand is underway," he said.
According to him, Pant was detained for allegedly misusing loan funds.
Earlier, the CIB had arrested Shashidhar Sharma, 58, of Rupandehi. Sharma, who is the chairman of Asian Village Resort Pvt Ltd, was arrested on July 14.
Sharma had obtained a Rs 480 million loan from Prabhu Bank. A special on-site inspection conducted by the Nepal Rastra Bank's Supervision Department in July found that the loan, which had been approved for the construction of a resort and the purchase of land, had instead been used to repay outstanding liabilities of other borrowing companies.
The inspection report also alleged that the loan was disbursed without first registering the land as collateral in the bank's name. Instead, a written undertaking was obtained stating that the collateral registration would be completed later. Sharma is accused of misusing the loan due to his family relationship.
Pant has now been taken into custody as part of the investigation into the same case.
