KATHMANDU: Police on Monday arrested an absconding banking fraud convict from Panipokhari of Kathmandu.

A special team deployed from the Central Investigation Bureau of Nepal Police arrested 41-year-old Kiran Keshar Nepal, a permanent resident of Mandikhatar in Kathmandu.

The then Patan Appellate Court on May 12, 2014, had convicted him of the fraud and sentenced to three years in prison and 94.138 million fine.

But, he was absconding since then and execution of the verdict was pending.

Nepal had taken the loan of Rs 90 million from the Capital Merchant Banking and Finance Limited on July 14, 2009, putting up his over-valued eight ropani land in Mandikhatar as collateral.

He had created a fake company with the name of Sita Khandsari Sugar Mill to take the loan in cahoots with the financial institution officials.

Meanwhile, police produced him before the Kathmandu District Court today, which sent him to the Sundhara-based Central Jail to execute the verdict.