Police have arrested Navin Subedi, Chief Executive Officer of Saptakoshi Development Bank, for his alleged involvement in misappropriation of bank money. Along with Subedi, Devi Prasad Bhandari, the bank’s finance chief, and Amit Thapa Magar, its operations chief, have also been detained.

Police investigation has revealed that a huge sum of bank money was transferred to the private account of Babita Subedi, sister of CEO Subedi. A total of NRs 157 million was transferred from the bank’s remittance branch in the past six years, says a police officer involved in the investigation.

“Of the total embezzled money, Rs 140 million was sent to Babita’s account at Prime Bank from between 2016 and August 2021,” says the police officer. The amount has already been withdrawn from the account. Family sources, however, claim that Babita did not even know she had an account at Prime Bank.

Earlier, police had arrested Himal Bhattarai, cousin of CEO Subedi, on the charge of his involvement in the scam. Bhattarai is head of the bank’s General Service Department (GSD) at its corporate office in Biratnagar. 

According to the bank, the remaining Rs 17 million was sent to the accounts of Bhagwati Subedi, Sajan Pokharel, and Bani Pokharel, among other relatives of CEO Subedi.

According to Morang Police SP Janardan GC, five other employees of the bank are under suspicion, as they reckon it wouldn't have been possible for one person to embezzle so much money.