The Central Investigation Bureau (CIB) on Sunday arrested Ashok Sherchan, the chief executive officer of Prabhu Bank, as part of an ongoing investigation into a major fraud allegation involving the Prabhu Group.

CIB officials confirmed that Sherchan was taken into custody earlier in the day. Further details regarding the arrest are yet to be disclosed.

The arrest follows a CIB raid on November 8 at the bank’s central office in Bijulibazar, where investigators seized key documents related to the case. Earlier, on October 28, the bureau had arrested Prabhu Group chairman and former UML lawmaker Deviprakash Bhattachan in connection with the same investigation.

The CIB is probing a complaint filed by Kusum Lama, chair of Prabhu Management, who accused Bhattachan and others of defrauding Rs980 million. The case has widened in recent weeks, with investigators examining financial transactions and internal management decisions linked to the alleged fraud.

Further updates are expected as the investigation progresses.