Banking News – Nepal Police have arrested Shashidhar Sharma, Chairman of Asian Village Resort Pvt. Ltd., on allegations of misusing bank loan funds obtained for the company’s resort development project.

A team from the Central Investigation Bureau (CIB) arrested the 58-year-old Sharma from Pingalasthan, Kathmandu Metropolitan City-9.

According to the CIB, the investigation was launched based on a special on-site inspection report prepared by the Bank Supervision Department of Nepal Rastra Bank in Asar 2083 (June–July 2026).

Authorities said Asian Village Resort Pvt. Ltd. had secured a Rs 480 million loan from Prabhu Bank Limited for the construction of a resort and the purchase of land.

However, investigators allege that the loan was disbursed without immediately registering the land as collateral in the bank’s name. Instead, the borrower signed an agreement promising to provide the collateral at a later date. The CIB further stated that the loan proceeds were allegedly diverted to settle outstanding liabilities of individuals with family ties to the company’s chairman, as well as other borrowing companies within the same business group.

Nepal Rastra Bank concluded that the alleged actions constitute misuse of loan funds under Section 8 of the Banking Offence and Punishment Act, 2008, and referred the case to the CIB for further investigation.

Following an arrest warrant issued by the Patan High Court, the CIB took Sharma into custody. Further investigation is underway under the provisions of the Banking Offence and Punishment Act, 2008.