KATHMANDU, MAY 13 The Central Investigation Bureau (CIB) of Nepal Police has arrested Jyoti Prakash Pandey, Chief Executive Officer of Nepal Investment Mega Bank Ltd, on charges of fraud and criminal breach of trust. Pandey was apprehended on Tuesday night at approximately 8:00 pm during a vehicle check along the Madanbhandari Highway in Sindhuli, with assistance from Sindhulibazar Area Police. He had reportedly switched off his mobile phone to evade detection before his arrest. According to CIB spokesman Senior Superintendent of Police Shiva Kumar Shrestha, the case stems from the operations of Smart Telecom Pvt Ltd, which had held a telecom service licence issued by the Nepal Telecommunications Authority (NTA) since 2070/01/02. The licence lapsed and was automatically cancelled from 2080/01/03 after the company failed to renew it. Following the cancellation, the NTA seized all of the company's assets, infrastructure, network systems, and telecom equipment under Article 18 of the Rules regarding Asset Management of Telecommunications Service Providers with Non-Existent Licences, 2079 (2022). Pandey is accused of exploiting his position as chairman of the Loan Recovery Committee to conduct a fraudulent auction of properties belonging to the Government of Nepal, with the intent of defrauding the state and undermining its interests, in violation of the Criminal Code, 2074. Separately, Nepal Investment Mega Bank issued a public notice on 2082/06/03 in connection with the auction, listing telecom equipment and other household goods for sale and demanding a lump-sum payment of Rs 40 crore - including the mortgaged house, land, and outstanding electricity bills - from the debtor. The bank's actions in seizing the mortgaged property under these conditions are also under investigation on charges of fraud and criminal breach of trust under the Criminal Code, 2074. The investigation is ongoing, the CIB said.