Taraman Gurung, coordinator of the Nepali Congress central disciplinary committee, has been released from police custody.
The District Police Range, Kathmandu, released Gurung after keeping him in custody for eight days.
According to Senior Superintendent of Police Dilip Ghimire, police arrested Gurung on September 3 on charges related to bounced checks.
Three people had filed complaints against him over bounced checks.
SSP Ghimire said that Gurung was released on September 11 after paying the amounts owed to all three complainants.
Gurung, who is also a former minister of state, had allegedly issued bounced checks worth Rs 3.35 million to Dorje Sherpa, Rs 1.4 million to Rigujyampu Sherpa, and Rs 2.4 million to Sunurpu Sherpa.
He was released after settling the amounts owed to all three.