In a major blow to the banking sector, the Central Investigation Bureau (CIB) of Nepal Police arrested Jyoti Prakash Pandey, the Chief Executive Officer of Nepal Investment Mega Bank (NIMB), late Tuesday night.
The 63-year-old high-profile banker was apprehended at approximately 8:00 PM during a vehicle check in Kamalamai Municipality-6, Sindhuli. According to CIB officials, Pandey was attempting to flee toward eastern Nepal with his mobile phone switched off at the time of his arrest.
The Charges: Fraud and Criminal Breach of Trust
Pandey is facing serious allegations under the National Criminal Code, 2017, specifically regarding:
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Illegal Auctioning of Assets: He is accused of orchestrating the unauthorized auction of infrastructure and equipment belonging to Smart Telecom Pvt. Ltd.
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Violating State Rights: Since Smart Telecom’s license was canceled in April 2023 due to non-renewal and unpaid dues (estimated at Rs 30 billion), its entire assets legally transitioned to the control of the Nepal Telecommunications Authority (NTA).
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Criminal Breach of Trust: As the chairman of the bank’s Loan Recovery Committee, Pandey allegedly bypassed government regulations to recover bank loans by auctioning off property that was no longer the company’s to sell, effectively “severing the rights of the Government of Nepal.”
The ₹400 Million Rental Scandal
Beyond the illegal sale, the CIB is investigating an additional fraud claim involving Rs 400 million. Investigations suggest that in September 2025, NIMB issued an auction notice requiring bidders to pay an extra Rs 400 million for outstanding house rent and electricity bills at sites where telecom equipment was installed. While the bank reportedly collected this amount, the funds were allegedly withheld from the actual property owners.
Wider Implications
Pandey’s arrest follows the recent detention of Sarbesh Joshi, the former Managing Director of Smart Telecom, as the CIB widens its net on what is being described as a massive collusion to embezzle state-owned assets.
Following his arrest in Sindhuli, Pandey was transported to Kathmandu this morning for further interrogation. The news has sent ripples through the financial corridor of Durbar Marg, raising urgent questions about corporate governance and the oversight of “bad loans” within Nepal’s largest commercial banks.