The Central Investigation Bureau (CIB) is conducting an investigation against controversial businessman Durga Prasai on charges of banking offence and money laundering.

According to Superintendent of Police Sudhirraj Shahi, spokesperson for CIB, a case was registered on March 30 under the Banking Offences and Punishment Act and the Money Laundering Prevention Act.

The Patan High Court, Lalitpur, granted permission to arrest Prasai for further investigation, Shahi said.

“Prasai and firms and companies associated with his family are accused of misusing loans obtained from various banks and financial institutions,” said SP Shahi. “Suspicious transactions have also been detected in their bank accounts.”

Nepal Rastra Bank sent a letter to the CIB on February 5, requesting an investigation and legal action, he added.

According to the central bank, Prasai is accused of diverting loans for purposes other than those mentioned in the loan applications, using new loans to settle existing ones, failing to repay principal and interest on time, and acquiring loans in excess of project requirements, among other charges.

Prasai is currently in custody at Kathmandu Police Range following his involvement in a violent royalist protest on March 28 at Tinkune. He allegedly drove his vehicle into police personnel, violating prohibitory orders, and incited the crowd to turn violent.

After the incident, Prasai fled to Assam, India. He was later taken into custody by Nepali authorities and brought back to Nepal.

The Kathmandu Police Range is investigating Prasai under charges of sedition and organised crime. The Central Investigation Bureau and Kathmandu police are jointly involved in questioning and recording his statements, SP Shahi said.