Karnali Bank CEO arrested for embezzling over Rs 2.5 billion

Rajendra Veer Raya, the founder chairman and chief executive officer of Karnali Development Bank, has been arrested on charges of misusing customers savings.

A team from the Central Investigation Bureau of Nepal Police arrested Raya on May 30 from Belahiya in Ward Number 1 of Siddharthanagar Municipality, Rupandehi district.

According to the police, Raya, who had served multiple times as the bank’s chairman and board member, is accused of embezzling more than Rs 2.5 billion from depositors. He had been absconding for a long time. Raya is originally from Salyan and was living in Nepalgunj Sub Metropolitan City, Ward Number 10. He is currently 65 years old.

The police said that further investigation is being carried out under the Banking Offense and Punishment Act in coordination with Nepal Rastra Bank.