Police have arrested a man on the charge of allegedly issuing death threats to controversial businessman Durga Prasai to demand ransom.

The Central Investigation Bureau (CIB) of Nepal Police on Tuesday arrested 40-year-old Ramesh Kumar Gurung of Rawabesi Rural Municipality-1 in Khotang from Maharajgunj in the Capital.

Superintendent of Police Sanjay Singh Thapa, CIB information officer, said the accused has been handed over to Metropolitan Police Circle, Maharajgunj for necessary action.

Police said Gurung telephoned Prasai on June 28 claiming him as Prawesh Lama and demanded Rs300 million, threatening that he will be murdered for failing to pay the amount.

Gurung was nabbed while he had reached the spot to collect the ransom, police said.