Absconding after the government tightened noose on the network business of Herbo International, they were held acting on a tip off, police said.
Chairman Shrestha is a permanent residence of Dharan Municipality-9 while Poudel of Saipu-7, Ramechhap.
They were handed a five-day imprisonment for investigation after they were presented before the District Court, Kathmandu following the arrest today.
Deputy Superintendent of Police Om Prasad Adhikari said they have been kept at the Hanumandhoka Police Sector. With their arrest, other proprietors of the network business would be held soon, he added.
Preliminary investigation of police has revealed that they have defrauded people by misappropriating worth Rs 1.51 billion.
Police had been searching them for long after the growing complaints from the victims.
The Herbo International Company set up as a network business has made 234,554 customers (members) so far and fleeced between Rs 6,000 to 5,000 from each of them.
Further investigation would reveal more details about the fraud, the police added.
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