Police have arrested former Managing Director of Kist Bank, Kamal Gyawali, after three years on the run. Patan High Court in 2015 had convicted Gyawali of banking fraud and embezzlement charges.

The court had handed down four-year imprisonment and slapped Rs 150 million fine on Gyawali. He had been at large following the court order.

According to high-level police source, a team of Metropolitan Crime Division arrested Gyawali from Nepal-India border and brought to Kathmandu. However, the police haven’t made public the information about Gyawali’s arrest. Division Chief SSP Dhiraj Pratap Singh said the police are still trying to arrest him.

The high-level source said the police are preparing to organize to press meet on Friday to inform about Gyawali’s arrested.

He was dragged into controversy over his wife Gauri Khanal’s involvement in banking offense.

Gyawali has been associated with the institution since its establishment in 2003. The then Kist Finance was upgraded into a commercial bank in 2009.

Gauri Khanal was found to have used loans worth Rs 130 million taken from Siddhartha Development Bank, which was meant for Jamko Publications Private Limited.

The loan awarded to Jamko Proprietor Kishor Dhakal was defaulted, and the collateral put up was found to have less value.