KATHMANDU: Former Joint Secretary of Nepal Trust, Lekh Bahadur Karki, has been arrested on charges of fraud and criminal breach of trust.

According to the Central Investigation Bureau (CIB), 66-year-old Karki from Bharatpur Metropolitan City-15, Chitwan, was taken into custody on Friday.

He is accused of fraud, criminal breach of trust, and irregularities related to the leasing of Nepal Trust land.

Police say that during the process of leasing land registered under Nepal Trust in Kathmandu Metropolitan City-1, Durbar Marga, to Thamseku Trekking Pvt. Ltd., Karki allegedly engaged in illegal activities to gain personal benefit, prompting an investigation.

The lease agreement between Nepal Trust and the company had specified that only the plot numbered 4606 would be leased.

However, Karki is alleged to have illegally included plot number 4605 as well, without proper authorization, according to CIB spokesperson, Senior Superintendent of Police Shiva Kumar Shrestha.

Furthermore, Karki reportedly extended the lease to 30 years despite the trust’s board having set a construction period of three years, acting with bad intent and without the board’s approval.

“Through this act, Nepal Trust—and by extension, the nation—suffered long-term financial losses, and it is alleged that former officials, government employees, and others gained unlawful benefits from this,” said Shrestha.

At the time of the alleged irregularities, Karki was serving as Joint Secretary at Nepal Trust.

He has since retired. The CIB is continuing its investigation into the roles of other individuals involved in the case.