Fiscal Nepal
First Business News Portal in English from Nepal
Devi Prakash Bhattachan
KATHMANDU: The Central Investigation Bureau (CIB) of Nepal Police has arrested Hem Kumar Mahaju, former shareholder and current assistant accounts chief of Prabhu Management Pvt. Ltd., on charges of fraud, criminal breach of trust, illegal financial gains, and multiple violations under the Nepal Rastra Bank Act, 2058.
Mahaju, 51, originally from Panauti-8, Kavrepalanchok, and currently residing in Godawari-3, Taaukhhel, Lalitpur, was apprehended on Mangsir 3, 2082 from Godawari following a detailed investigation.
Suspicious Deposits and Hundi Transactions Uncovered
The investigation stems from a complaint filed by Thakur Prasad Manandhar and others, naming the Government of Nepal as plaintiff and Kusum Lama and associates as defendants.
According to CIB, evidence shows that Prabhu Management’s bank account at Citizens Bank Ltd. received repeated suspicious deposits of Rs 9,99,500 each, intentionally kept below the Rs 1 million reporting threshold, and deposited multiple times under different names.
Authorities found that,
Prabhu Management Pvt. Ltd. was authorized to carry out outward remittance payments only,
But the account showed multiple same-day deposits of suspicious amounts,
Funds were being routed through the account under the pretext of remittance,
And the company used the remittance business as a cover to settle illegal hundi transactions.
The CIB says the company appears to have taken hundi-originated remittance money, deposited it into its account, and adjusted accounts internally — a serious financial crime that violates both national banking laws and anti–money laundering regulations.
Key Role of Mahaju in Account Handling
CIB officials confirmed that Mahaju played a direct role in managing the Citizens Bank account where illegal hundi-related transactions were conducted.
As,
a former shareholder of Prabhu Management,
a staff member in the company’s accounts division, and
one of the authorized operators of the company’s bank account,
Mahaju is alleged to have knowingly facilitated the suspicious transactions and helped disguise hundi settlements as legitimate remittance activity.
Ongoing Investigation
A CIB team deployed for the operation arrested Mahaju and has begun further interrogation. Investigators will now examine:
the extent of the fraud,
other individuals involved,
the network behind the hundi operations,
and the flow of illegal funds into Nepal under the cover of remittances.
Nepal Police stated that additional arrests may follow as the bureau identifies more suspects linked to the illicit financial network.
CIB says the investigation aims to dismantle the broader system of hundi operations that undermine Nepal’s formal financial sector and violate the Nepal Rastra Bank Act.
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