Banking News – Durga Prasai is a Nepalese businessman, medical entrepreneur, and political activist. He founded B&C Medical College in Jhapa but faced financial controversies, including defaulting on NPR 5.57 billion in bank loans. He has been involved in multiple legal cases, including cybercrime charges, extortion investigations, and a money laundering probe related to suspicious transactions and misuse of loans worth NPR 6 billion. Politically, he is known for advocating the reinstatement of Nepal’s monarchy and a Hindu state while being a vocal critic of the government.

Bank Loan Defaults and Legal Actions

• Loan Defaults: Prasai reportedly defaulted on loans amounting to NPR 5.57 billion borrowed from eight different commercial banks in Nepal to establish the B&C Medical College in Jhapa. The loans include amounts such as NPR 1 billion from Kumari Bank and NPR 1 billion from Global IME Bank (formerly Janata Bank). Prasai has stated that he will repay these dues once the government grants affiliation permission to his college. ​
• High Court Petition Dismissed: In December 2024, the Biratnagar High Court dismissed a petition filed on behalf of Prasai seeking an injunction against four banks, including Kumari Bank’s Birtamod branch, to prevent them from recovering the loans he borrowed. This decision paved the way for the banks to initiate recovery proceedings.

Cybercrime Charges and Arrests

• Spreading False Allegations: In November 2024, Prasai was arrested for allegedly spreading false information on social media, accusing Prime Minister KP Sharma Oli of depositing money in Cambodia. A case was filed against him under the Electronic Transactions Act, with a potential sentence of up to 7.5 years if found guilty.
• Release on Bail: Prior to this, in October 2024, Prasai was released on bail after being arrested on cybercrime charges. He paid a bail amount of NPR 100,000, with NPR 50,000 set for each of the two separate complaints lodged against him under the Electronic Transactions Act.

Threats and Extortion Investigations

• Threatening Bankers and Entrepreneurs: In November 2024, reports emerged that Prasai was being investigated for threatening bankers and entrepreneurs and demanding ransom. During the initial investigation, it was revealed that Prasai and Indian gangster Lawrence Bishnoi were involved in these activities.
• Payment for Orchestrating Threats: Further investigations revealed that Prasai allegedly paid NPR 500,000 to orchestrate threats against businesspersons in Nepal using the name of Indian gangster Lawrence Bishnoi. Consequently, he was transferred to the Central Investigation Bureau (CIB) for a detailed investigation into allegations of criminal extortion. ​

Money Laundering Investigations

• Suspicious Transactions: The Financial Information Unit (FIU) of Nepal Rastra Bank flagged suspicious transactions involving Prasai and some of his relatives’ accounts. Investigations revealed that Prasai had taken loans worth NPR 6 billion from various banks. Authorities are examining whether these loans were utilized appropriately, and if misused, violations under the Rastra Bank Act could be applicable.

​Durga Prasai has made several controversial statements in various interviews and public appearances. Notable instances include:​

1. Allegations Against Female Nepali Students in Bangladesh (July 2018): Prasai implied that female Nepali medical students in Bangladesh were engaging in inappropriate relationships with professors to obtain degrees. This led to defamation accusations and formal complaints invoking Nepal’s Libel and Slander Act, 2016.
2. Accusations Against Prime Minister KP Sharma Oli (November 2024): Prasai alleged on social media that Prime Minister Oli invested NPR 32.5 billion in a Cambodian telecom company. Authorities deemed the documents he presented as falsified, resulting in his arrest under charges of spreading false information.
3. Threats to Overthrow the Government (March 2025): Leading the “Nation, Nationality, Religion-Culture, and Citizen Rescue Campaign,” Prasai publicly threatened to overthrow the existing government, advocating for the restoration of the monarchy and reinstatement of Nepal as a Hindu kingdom. His confrontational rhetoric has been a hallmark of his public appearances.
4. Provocative Remarks and Leadership Style: Prasai’s speeches are often marked by provocative and, at times, violent language. He has suggested that reinstating the monarchy would resolve Nepal’s issues but has been criticized for lacking the decorum expected of a leader, especially given his confrontational approach toward critics.
5. Defamatory Claims Against Medical Education Commission Vice-Chairman (2020): Prasai accused Shri Krishna Giri, vice-chairman of the Medical Education Commission, of demanding NPR 200 million to approve affiliation for B&C Medical College. This led to a defamation complaint and a subsequent arrest warrant against Prasai.
6. Bribery Allegations Involving Rastriya Swatantra Party MP (January 2023): An audio recording surfaced in which MP Dhaka Kumar Shrestha allegedly solicited NPR 20-30 million from Prasai, claiming the funds were to secure a ministerial position that would facilitate medical affiliations. This controversy led to Shrestha’s expulsion from his party and suspension from Parliament.

Criminal Conviction Status

These incidents have contributed to Prasai’s reputation as a divisive figure in Nepal’s socio-political landscape. These incidents highlight a series of financial and legal challenges involving Durga Prasai, reflecting ongoing concerns about banking fraud and financial crimes in Nepal.​

As of now, Durga Prasai has not been convicted of any major criminal offenses in a court of law. However, he has been a subject of legal investigations, and the ongoing cases will determine the extent of any criminal liability.

In conclusion, while Prasai has been involved in several criminal investigations and legal disputes, he has not been definitively convicted of any crime as of now. His actions have led to controversy and legal challenges, but his criminal status remains unresolved until proven in court.