Three individuals, including former Karnali Development Bank Chief Executive Officer Neeraj Bikram Shah, have been arrested in connection with an alleged loan embezzlement and financial irregularities case.

According to the Banke District Police Office, Shah, his wife Shubheksha Shrestha, and former Nepalgunj branch manager Deepa Thapa were arrested in Nepalgunj on Friday for investigation under banking offense and financial crime laws.

Authorities are investigating allegations of loan misappropriation and financial irregularities at Karnali Development Bank. The case involves alleged embezzlement of more than Rs. 3.20 billion.

A case has already been filed at the Commercial Bench of the High Court Tulsipur in Nepalgunj, where 109 individuals have been named as defendants. Police said further investigation into the high-profile banking fraud case is ongoing.