Prabhu Bank’s Chief Executive Officer, Ashok Sherchan, has finally been arrested in connection with the alleged Rs 98 crore (980 million) fraud case.
The word “finally” is used because, after the recent arrest of the bank’s Chairman Devi Bhattachan, speculation had intensified that Sherchan could also be arrested at any moment. As expected, police arrested him on Sunday.
Bhattachan had earlier been arrested based on a complaint filed by Kusum Lama, the chairperson of Prabhu Management, regarding the alleged financial irregularities. After spending a few days in custody, Bhattachan was released on bail. Sherchan’s arrest follows continued investigation into the same case.
What Is the Reality Behind the Case?
It is still unclear what the actual truth is or what roles Sherchan or Bhattachan may have played. How long Sherchan will remain in custody (or jail) will depend entirely on the findings of police investigation.
Being arrested during an investigation does not automatically make someone guilty, nor can anyone declare them innocent at this stage. Drawing conclusions before the investigation is complete would be both inappropriate and prejudiced.
Impact on Sherchan’s Banking and Political Career
A major question now arises: What will happen to Sherchan’s banking career and the political journey he recently began?
History shows that in Nepal, individuals charged by the Commission for the Investigation of Abuse of Authority (CIAA) have sometimes been acquitted by the courts and returned to high positions. Former Nepal Rastra Bank governors Kalyan Bikram Adhikari, Kul Shekhar Sharma, and Bijaya Nath Bhattarai are examples—despite facing corruption charges, all were cleared by the judiciary and maintained their reputations.
However, cases involving fraud or financial misconduct investigated by police rarely allow individuals to return to their previous status, whether in politics or banking. Reinstatement after a police arrest on fraud charges is extremely uncommon in Nepal.
Will Sherchan Be an Exception?
Will Sherchan’s case be an exception? Even if he is fully exonerated, will society accept him easily? And what will happen to the political career he attempted to build through the Madan Bhandari Foundation? These questions remain uncertain for now.
Sherchan’s Rise and Contributions
Sherchan had returned to Nepal from the UK, where he was studying, to become the CEO of Prabhu Finance. Under his leadership, Prabhu Finance grew into a commercial bank and later merged with several banks—including Kist Bank, Grand Bank, and Century Bank—making Prabhu Bank one of Nepal’s largest commercial banks.
Interestingly, former CEOs of merged banks—Kamal Gyawali (Kist Bank) and Manoj Neupane (Century Bank)—also faced fraud-related arrests in the past. Sherchan is now the third CEO from these merged institutions to be arrested.
Apart from banking, Sherchan had made significant contributions to Nepal’s apple production and market development, especially due to his roots in Baglung. His efforts were considered important for uplifting Nepal’s agricultural sector.
How this case concludes remains to be seen, but its impact on Sherchan’s professional and political journey is likely to be long-lasting.