BIRATNAGAR: Inmates at Morang District Prison staged a protest on Saturday after Abhishek Giri was arrested on allegations of extorting government allowances and labor earnings from prisoners.

Police arrested Giri from his residence in Biratnagar on charges of misappropriating inmates’ winter and summer clothing allowances and money earned from weaving stools and carpets inside the prison. A preliminary investigation suggests the funds were diverted to bank accounts belonging to Giri’s associates, allegedly with the collusion of inmate leader Rakesh Yadav.

Tensions escalated after police brought Yadav in for questioning, prompting inmates to stage a demonstration with placards demanding action against Giri while opposing any transfer of Yadav. Police later returned Yadav to the prison after recording his statement.

According to police, inmates receive an annual Rs 5,000 clothing allowance and daily snack allowances, while hundreds also earn wages through prison-based weaving work. Authorities are investigating allegations that both the government allowances and prisoners’ earnings were systematically extorted.

After his arrest, Giri complained of chest pain and was admitted to the emergency ward of Koshi Hospital in Biratnagar. Giri, who was released two years ago after serving a nine-year prison sentence in a kidnapping and hostage-taking case, is also accused of continuing to interfere in prison affairs after his release.