The Nepal Rastra Bank (NRB) Thursday directed the government authorities to arrest promoter of Nepal Development Bank (NDB) Uttam Pun and its chairman Amar Gurung on charges of fraud.

The NDB bosses have been accused of fraud worth 1.04 billion rupees, leading this first private sector development bank to bankruptcy.

The central bank recently filed a case at the Patan Appellate Court seeking permission to start the liquidation of the bank.

The central bank had declared NDB a problematic bank in October 2007. Its accumulated losses had reached Rs 678.6 million by the end of mid-March 2009.

NRB had on June 3 decided to liquidate NDB after its long effort to revive the latter's deteriorating financial health failed. nepalnews.com