KATHMANDU: Armed Police Force (APF) Inspector Kalpana Gurung, an accountant at the Armed Police Force School in Kirtipur, has been arrested on allegations of financial embezzlement.

The Kathmandu District Police Range arrested Gurung on Saturday.

According to police, the Armed Police Force requested the Kathmandu police to arrest and take legal action against Gurung over allegations of financial irregularities.

Based on that request, she was taken into custody, said Superintendent of Police Pawan Kumar Bhattarai.

Police have also arrested Gurung’s associate, Leela Bahadur Lama.

Preliminary investigations indicate that money was transferred from the Armed Police Force School’s bank account to Lama’s personal bank account.

Investigators say funds that were supposed to be deposited into the Armed Police Force Welfare Fund were instead transferred to her associate’s account.

The Armed Police Force launched an internal investigation after it found discrepancies involving nearly Rs 110 million in its accounts.

Police said Gurung also transferred money to the bank accounts of M Adventure Travel & Tours, Hamro Ticket Pvt. Ltd., and MD Holidays Pvt. Ltd.

Gurung had been serving at the Armed Police School for the past six years.