Police have arrested Ram Bahadur Khanal, a partner of Gitendra Babu (GB) Rai, in connection with the Pokhara-based Suryadarshan Savings and Credit Cooperatives fraud case.

Rai is the main accused in various cooperative fraud cases in which millions of rupees from different cooperatives were channelled to the now-defunct Gorkha Media Network. He is currently on the run.

Khanal, 48, of Tanahun, who is also a shareholder in Gorkha Group of Companies Limited, was arrested by a police team from the Central Investigation Bureau (CIB) on Friday in Panipokhari, Kathmandu. He owns Nature Herbs International.

According to Superintendent of Police Hobindra Bogati, spokesperson for CBI, Khanal was arrested in the same case in which former deputy prime minister and home minister Rabi Lamichhane is being investigated.

Khanal has been sent to the District Police Office, Kaski, for further action.