Prabhu Bank Chief Executive Officer Ashok Sherchan was released on Friday. Sherchan, along with other bank officials, was earlier arrested on the charges of misappropriating bank savings.

The Government Attorney’s Office, Kathmandu, decided to release Sherchan, citing the unavailability of evidence as sought by the court and Sherchan’s health condition. He was released on the condition that he must remain available when summoned.

Sherchan was freed from custody as per the government attorney’s decision, said Additional Inspector General Manoj Kumar KC, chief of the Central Investigation Bureau. “We had taken him for a remand extension as some work, including recording statements, was still pending. However, he was released after the government attorney’s decision,” KC said.

Mohan Kumar Basyal, chief of the Special Government Attorney’s Office, Kathmandu, said that the Special Court bench, while extending remand earlier, had directed investigators to produce additional evidence. “As that evidence could not be obtained immediately, it appeared possible to continue the investigation without keeping him in custody,” he said, adding that health-related reasons were also considered.

Police had arrested Sherchan along with Deputy Chief Executive Officer Maniram Pokharel and Chief Risk Officer Rivas Shrestha from the bank’s central office in Bijulibazar on November 30.

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 of the bank.