Police have arrested a Malaysian national and a casino manager along with banned Indian currency notes from Kailali-based Kings Lounge Casino on Sunday.

According to the police, Malaysian national Azauujin and casino manager Sujan Dahal have been arrested for the misappropriation of banned Indian currency of Rs 500 and Rs2000 denominations at the only casino in Dhangadi, being operated at Saathi Hotel in Kailali.

A team under District Police Office DSP Bir Bahadur Budamagar raided the casino after receiving information that the casino is carrying out ‘hundi’ business (transfer of money through illegal channels) and gambling activities.

Police recovered NRs 1.2 million and IRs 200,000 from the possession of Malaysian ‘hundi’ businessman including the banned currency of Rs500 and Rs 2,000 denominations, during the raid.

Both arrestees have been sent to Kathmandu-based Inland Revenue Investigation Department for further investigation.