The Central Investigation Bureau (CIB) on Sunday arrested Ashok Sherchan, the Chief Executive Officer of Prabhu Bank, in connection with a major fraud investigation involving the Prabhu Group.
CIB officials confirmed Sherchan’s arrest but have not yet released further details. His apprehension marks the latest development in the expanding probe into allegations of large-scale financial wrongdoing within the group.
The arrest comes weeks after a CIB raid on November 8 at Prabhu Bank’s central office in Bijulibazar, where investigators seized documents believed to be crucial to the case. Earlier, on October 28, the bureau detained Deviprakash Bhattachan, Prabhu Group chairman and former UML lawmaker, as part of the same investigation.
The CIB launched the inquiry after Kusum Lama, chair of Prabhu Management, filed a complaint accusing Bhattachan and others of defrauding Rs980 million. Since then, the investigation has widened to include financial transactions, managerial decisions, and internal governance issues tied to the alleged fraud.
Authorities say more information will be released as the investigation continues.
