DIG Hemata Malla at the Central Investigation Bureau (CIB) of Nepal Police confirmed the arrest.
Police on January 6 had issued a diffusion notice via Interpol against Magar, who had reached Saudi Arabia in course of foreign employment.
Motorcycle-borne assailants had shot dead justice Bam at UN Park on 31 May in 2012 while he was returning after worshiping at Bangalamukhi Temple.
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Raising curtains on murder mystery of former Justice Bam two and a half years ago, police had made public Babu Thapa of Churebhawar Rastriya Party, Karan Chaudhary, Prem Raj Khadka and Dipak Karna on January 3 alleging them for the high-profile murder.
Khadka is out on the bail amount of Rs 50,000, while three others are currently in judicial custody.
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