Banking News – Police have arrested a man in Nepalgunj after recovering Indian currency worth Rs. 400,000 in banned Rs. 500 denomination notes, allegedly linked to illegal financial transactions.

The suspect, Bir Bahadur Raut, an employee of New Laxmi Hotel and Lodge located in the Nepalgunj Bus Park area, was arrested on Wednesday, according to Banke District Police Office Chief and Superintendent of Police Angur GC.

Police said the arrest followed a special tip-off regarding suspected illegal transactions in the bus park area. During the operation, officers recovered 800 Indian Rs. 500 notes, equivalent to Rs. 400,000, which had allegedly been concealed.

“We recovered the currency from where it had been hidden,” SP GC said.

Police noted that Indian Rs. 500 denomination notes are prohibited for circulation and transactions in Nepal, making possession and use of such currency subject to legal action.

SP GC added that complaints had been received about illegal activities taking place in hotels around the bus park area. He said legal proceedings would be initiated against Raut under the relevant provisions of the Nepal Rastra Bank Act.

Meanwhile, Dharma Raj Basnet, owner of New Laxmi Hotel and Lodge, claimed the money belonged to a group of six contractors from Jajarkot. According to him, the contractors had collected the amount to exchange it into Indian currency for around 50 workers under their supervision who required Indian cash.