Kathmandu: Central Investigation Bureau (CIB) of Nepal Police has launched a probe into 25 companies linked to controversial medical entrepreneur Durga Prasai for allegedly misusing loans totaling over Rs 7.25 billion.
According to police, Prasai and his close relatives secured the loans from multiple banks and financial institutions, but diverted the funds for purposes unrelated to those originally declared. The CIB said further investigation will continue after Kathmandu police complete their ongoing interrogation of Prasai.
Prasai was arrested in India and brought back to Nepal following the March 28 pro-monarchy protest in Tinkune, which turned violent. He is currently in custody at the Kathmandu District Police Office and is also being investigated under banking offense and money laundering charges.
Investigators have found that two of Prasai’s prominent institutions—B&C Medical College Teaching Hospital and Research Center Pvt Ltd and Purbanchal Cancer Hospital Pvt Ltd—have defaulted on loan repayments for the past four years.
Preliminary findings indicate significant discrepancies in loan usage.
For example, a loan of Rs 125 million taken in the name of Purbanchal Cancer Hospital from the then-NCC Bank (now Kumari Bank), a Rs 50 million loan for a hotel from Nepal Investment Mega Bank, and Rs 100 million from Goodwill Finance under UA Medico Supplies and Equipment Pvt Ltd were all allegedly misappropriated.
Police said the total loan amount—recorded as of mid-October 2023—was under scrutiny, with more firms possibly facing investigation as the case unfolds.