Dev Kumar Nepali, the founder chairman of the Image Savings and Credit Cooperative, who is currently in custody pending trial, addressed a gathering of victims outside the District Government Attorney’s Office on Sunday.

Nepali, who is accused of embezzling over Rs1.5 billion from over 1,543 depositors, was brought out of jail by District Police Chief Rishiram Kandel to speak to the victims.

Nepali has been in jail since his arrest for alleged fraud. He told more than 300 savers in the cooperative that their money would soon be returned. “I will ensure that the public’s money is returned. I am ready to sell everything I have for it,” he said. “I am currently in jail… but you will get your money soon."

The case against Nepali was filed after more than 1,500 depositors lodged complaints against him for fraud. The court had sent him to custody for further investigation, where he faces allegations of misappropriating a total of Rs1.54 billion from the cooperative’s funds.

The incident of Nepali speaking to the victims raised concerns as local authorities were not aware of the arrangements. District Attorney Purna Prasad Upadhyaya is currently on leave, and Chief District Officer Netra Subedi expressed his surprise. “I was unaware of this incident. A detainee should not be allowed to speak publicly outside the jail, and I am looking into the matter.”

According to the Prisons Act 2079, under Section 17, prisoners are only allowed to meet relatives, close family members, or designated legal representatives under strict security. Any such meeting or event, especially involving a detainee addressing the public, should be reported to the Chief District Officer, which was not the case on Sunday.

Senior advocate Kaji Gaunle Shrestha also questioned the legality of the incident, asking, “Who authorised him to give a speech outside jail? If a detainee can speak publicly, what is the purpose of the law? Can any prisoner come out and make a public statement?”

Meanwhile, district police chief Kandel defended his actions, saying his job was to ensure Nepali’s security, and he had no interest in what Nepali had to say. Jail administrator Dhirendra Raj Pant confirmed that Nepali was granted permission to leave the prison only for a reconciliation meeting at the Government Attorney’s office, but it was unclear how he ended up addressing the crowd.

The Chief District Officer, Subedi, has assured an investigation, emphasising that such incidents should not be allowed. He also stated that Nepali’s speech, made without proper clearance, is under review.