Former CEO of Karnali Development Bank, Rajendraveer Raya, Arrested Over Multi-Billion Embezzlement Scandal

Nepalgunj – In a major financial misconduct case, Rajendraveer Raya, the former CEO and founding chairperson of Karnali Development Bank, has been taken into custody by the Central Investigation Bureau (CIB) of Nepal Police.

Authorities confirmed that Raya was apprehended near the Nepal–India border on Saturday. While the arrest was officially made from the border point, sources suggest that he may have been captured inside Indian territory.

Originally from Salyan district, the 65-year-old Raya had been residing in Nepalgunj-20 in recent years. He served as the CEO of Karnali Development Bank between 2019 and 2022 (2076–2079 BS). The bank itself has been operational since 2003 (2060 BS).

Internal investigations carried out by the bank have revealed that approximately NPR 4.90 billion (around 49 crore rupees) was embezzled during Raya’s tenure. The probe has also implicated several other senior officials, including former CEO Dinesh Kumar Rawat, finance head Bed Prakash Thakuri, and Niraj Bikram Shah.

Raya had been on the run since the irregularities came to light. With his arrest, police are now set to transfer him to Banke district for further legal proceedings and to seek an extension of his custody.

At present, Karnali Development Bank is under the direct supervision of Nepal Rastra Bank. The central bank had stepped in due to concerns over financial mismanagement and institutional failure.

This incident has once again brought attention to the critical need for stronger governance and accountability within Nepal’s banking sector.