KATHMANDU, April 28: The Central Investigation Bureau (CIB) of Nepal Police has launched an investigation into 25 firms associated with controversial medical entrepreneur Durga Prasai for allegedly misusing over Rs 7.25 billion in loans.
According to police, Prasai and his relatives took loans from multiple banks and financial institutions and diverted the funds for purposes other than what was originally stated.
Durga Prasai under investigation for defaulting loans worth ove...
As per records, Prasai had borrowed around Rs 7.25 billion by mid-October 2023. According to the CIB, further investigations will be conducted after Kathmandu police complete their interrogation. The loans were found to have been used for unrelated purposes, CIB said.
Prasai, who was arrested in India and brought to Nepal following a March 28 incident in Tinkune, is currently in custody at the Kathmandu District Police Office. The CIB is also probing him under banking offense and money laundering charges.
Investigators found that B&C Medical College Teaching Hospital and Research Center Pvt Ltd and Purbanchal Cancer Hospital Pvt Ltd, firms run by Prasai, have failed to repay loans for the past four years.
Initial findings show loans issued in the name of Purbanchal Cancer Hospital (Rs 125 million from then-NCC Bank, now Kumari Bank), a hotel (Rs 50 million from Nepal Investment Mega Bank), and UA Medico Supplies and Equipment Pvt Ltd (Rs 100 million from Goodwill Finance) were not used for their stated purposes.
