Kathmandu: The Central Investigation Bureau (CIB) of the Nepal Police has apprehended Om Prasad Pandey, the Chairman of the Ram Janaki Health Foundation, in connection with a major banking fraud case.
A specialized team from the CIB took Pandey into custody from the premises of the Janaki Medical College located in Ramdaiya, Dhanusha, where he also serves as the institution’s chairman.
The arrest follows a detailed investigation into allegations that Pandey orchestrated a sophisticated financial scam by establishing a fraudulent shell entity named the Institute of Agriculture, Forest, and Veterinary Sciences Pvt. Ltd.
According to investigators, Pandey managed to secure substantial credit from Prabhu Bank Limited by presenting unnaturally inflated valuations of collateral and bypassing mandatory regulatory requirements, such as the submission of a Detailed Project Report.
Authorities further revealed that the funds obtained from the bank were systematically diverted and utilized for purposes entirely unrelated to the stated business objectives. This repeated misappropriation of credit constitutes a serious violation of the Banking Offences and Punishment Act, 2008. Pandey, a resident of Ratopul in Kathmandu, is accused of acting as the sole proprietor of the shell company to facilitate these illicit transactions and deceive financial regulators.
Following the issuance of an arrest warrant by the Patan High Court in late 2025, the CIB successfully located and detained Pandey this week. He is currently being held for further interrogation as the bureau deepens its probe into the extent of the financial irregularities and the potential involvement of other parties in the loan embezzlement scheme.
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