CIB Detains Guna Airlines Chair Shakya

The Central Investigation Bureau (CIB) of Nepal Police on Wednesday arrested Rajendra Shakya, chairman of Guna Airlines, in connection with the alleged misappropriation of funds belonging to Prabhu Money Transfer.

According to CIB Spokesperson Shiva Kumar Shrestha, Shakya was taken into custody under the Banking Offence and Punishment Act, 2008, after investigators found that large loans had been disbursed from Prabhu Bank in the name of Shakya to conceal the misuse of remittance funds. The CIB said it had secured an arrest warrant from the Patan High Court before detaining the accused.

Police had earlier arrested Prabhu Bank CEO Ashok Sherchan, Deputy CEO Maniram Pokharel, and Chief Risk Officer Rivas Shrestha on Sunday for alleged misappropriation of funds.

During the investigation, an expert team analyzed the collected documents and evidence, which revealed that Sherchan had violated Nepal Rastra Bank directives and existing laws, causing financial damage to Prabhu Bank Limited, while disbursing loans to Shakya.

The CIB had also detained former Prabhu Bank Chairman Devi Prakash Bhattachan. However, he was later released on bail after citing health issues, following a request from the government attorney.

Prabhu Money Transfer Chairperson Kusum Lama had filed complaints accusing Bhattachan of fraud, criminal breach of trust, unlawful gain, and violations of the Nepal Rastra Bank Act, 2002, in connection with alleged irregularities in remittance funds. Police stated that other individuals involved in issuing and misusing loans under various companies to conceal these activities are also under investigation.