Kathmandu. KATHMANDU: Chairman of Ram Janaki Health Foundation, Om Prasad Pandey, has been arrested on the charge of loan misuse and banking fraud.

According to the Central Investigation Bureau (CIB) of Nepal Police, Pandey has been accused of setting up a company and an artificial business and taking loans from various banks without necessary documents and project report (DPR).

During the investigation, it was found that he had misused the loan taken from Prabhu Bank by diverting it from the specified purpose, police said. According to the police, it was an offence under the Banking Offences and Punishment Act, 2064.

Pandey, a resident of Ratopul of Kathmandu metropolis-9, is also the chairman of board of directors of Ram Janaki Health Foundation and sole proprietor of the company.