The Central Investigation Bureau (CIB) has launched an investigation into alleged irregularities in the leasing of Nepal Trust land in Durbar Marg, arresting former joint secretary Lekh Bahadur Karki in connection with the case.

Additional Inspector General Manoj KC, the CIB chief, said that Karki, 66, was taken into custody on Friday for his suspected involvement in signing a lease agreement that reportedly caused financial loss to the Trust.

“We have begun further investigation following his arrest,” KC said.

According to the police, the probe concerns a 30-year lease deal that appears to have been executed without proper approval, in violation of procedural requirements.

Preliminary findings indicate that the leased area includes not only plot number 4606 as mentioned in the contract but also plot number 4605, which was not authorised for leasing.

Authorities suspect the agreement may involve offences under fraud and criminal breach of trust provisions.

The Nepal Trust, which manages properties belonging to the former royal family, has long faced scrutiny over land use and leasing practices.

Investigators said further inquiry will be conducted based on Karki’s statement and the documents seized during the operation.

A statement issued on Saturday by the CIB states that he had abused his authority being involved in an act of causing long-term losses to the Trust without making any decisions from the board of directors.