Prabhu Bank CEO Ashok Sherchan released as investigation continues

Kathmandu: Ashok Sherchan, Chief Executive Officer of Prabhu Bank, has been released from custody, police officials confirmed on Tuesday.

Sherchan had been taken in for a possible extension of detention in connection with three separate cases, but the Office of the Special Public Prosecutor ordered his release, according to Central Investigation Bureau spokesperson Shiva Kumar Shrestha. He said the investigation will continue with Sherchan remaining out of custody.

Sherchan is currently receiving treatment at Chirayu Hospital after developing health complications. He was arrested on November 30 from Prabhu Bank’s central office in Babarmahal.

The investigation stems from an escalating financial dispute between Prabhu Group Chairman Devi Prakash Bhattachan and his business partner Kusum Lama. As the dispute intensified, Prabhu Bank and its CEO were also drawn into the scope of the inquiry.

The CIB is investigating allegations that Prabhu Management, an entity with investments from Bhattachan and Lama, acted as the super agent for remittance operations of both Prabhu Money Transfer and Prabhu Bank. Investigators allege that funds taken as security deposits from cooperatives for remittance transactions were misappropriated.

Authorities say further investigation is ongoing, and no formal charges have yet been announced.