KATHMANDU, Oct 5: Kamal Gyanwali, CEO of the then KIST Bank has been arrested from Mahendranagar on Friday morning. According to Dhiraj Singh, SSP, Metropolitan Crime Division, Gyanwali was arrested on Friday morning and he will be presented to the court at 10:00 am.
On September 20, 2016, the Patan appellate court had found Gyanwali guilty and had sentenced him for four-year jail term and 40.5 million charges for banking fraud. Since then he was at large.
Gauri Khanal Gyanwali, the wife of the then KIST Bank’s CEO Kamal Gyanwali, was detained by the police in connection to a banking fraud charges on June 5, 2013.
As per an investigation by the Nepal Rastra Bank (NRB), Mrs Gyanwali caused Siddartha Development Bank to suffer losses while taking a loan of Rs 130 million.
NRB probe had found that Kamal, who was a shareholder at Siddartha Development Bank, used his personal influence while taking out the loan on his wife’s name keeping an undervalued land as collateral.