KATHMANDU: The Department of Foreign Employment on Wednesday released UCPN-Maoist lawmaker Lharkyal Lama, accused of a foreign employment fraud, on a bail of Rs 3 million.

He was arrested on Monday on charges of swindling money from foreign job aspirants.

DoFE spokesperson Janak Regmi said the Department decided to release him on bail after questioning him about the fraud charges lebelled against him.

He said the Department would investigate further to reach a conclusion on whether a fraud case should be filed at the court. The Department needed to collect further evidences to reach a conclusion, he added.

Lama, who was accused of keeping bullets in his bank locker, was released on bail on Monday after spending seven days in police custody, but was rearrested on the same day for investigation into a two-year-old fraud case.

Lama was accused of duping youth of Rs 21.9 million promising to send them abroad. The case was filed against him in September 2013.

On Monday, the Kathmandu District Administration Office had released Lama on a bail after he deposited Rs 66,700 for his release.

On March 13, Lama was taken to police custody after the Commission for the Investigation of Abuse of Authority found 14 bullets in his locker in Nepal Investment Bank Limited, Darbarmarga, and handed him over to the Metropolitan Police Range.

The CIAA had recovered the bullets during a search in connection with allegations against him of amassing property disproportionate to his known sources of income. Following the seizure of bullets, the police filed a case against Lama under the arms and ammunition law.