The fraud and criminal breach of trust case against Prabhu Bank Chief Executive Officer (CEO) Suman Sharma has been assigned to Judge Devikumari Chaudhary’s bench at Parsa District Court, a district-level court in Nepal. A detention hearing is scheduled for today, following Sharma’s surrender to the court on Tuesday, October 6, 2026.
During the hearing, Judge Chaudhary’s bench will deliberate whether Sharma should be sent to judicial custody for pre-trial detention, released on bail, or released on a general date.
Sharma faces charges of fraud and criminal breach of trust stemming from his tenure as CEO of the former Sunrise Bank. He is accused of approving a loan for Anjali International but failing to disburse the funds, instead proceeding to auction the collateral.
The case was filed based on a complaint by Nirmala Devi, the operator of Anjali International. Four individuals, including Sharma, were named as defendants: Kedar Singh, then Deputy Manager of Sunrise Bank’s Birgunj branch; Subodh Joshi, a Senior Officer at the same branch; and Rabindra KC, then Head of Loan Administration and Deputy Manager at the bank’s central office.
Anjali International had sought an additional loan of Rs 38.99 million from Sunrise Bank for business expansion, which was approved. Land in Amavasya, Bara district, registered under Nirmala Devi’s son, Sunil Kumar Sah Teli, and valued at approximately Rs 8.9 million, was placed as collateral. The indictment states that the bank proceeded with the collateral auction process after blocking the property but did not deposit the approved loan amount into the borrower’s account.
This follows his surrender to Parsa District Court on Tuesday, October 6, 2026, after an arrest warrant was issued against him and other absent defendants. Sharma had been appointed CEO of Prabhu Bank, a commercial bank in Nepal, for a four-year term effective from Magh 20, 2082 BS. For more details on his surrender, read our previous report: Prabhu Bank CEO Suman Sharma surrenders to Parsa District Court.
Nepal Rastra Bank, the central bank of Nepal, is reportedly increasing its surveillance on Sharma. While discussions have taken place within Prabhu Bank regarding Sharma’s suspension based on employee regulations, neither Prabhu Bank nor Nepal Rastra Bank has issued an official statement on the matter.
The outcome of the detention hearing at Parsa District Court, which will determine Sharma’s immediate legal future, remains unknown. The exact date of the alleged fraud at the former Sunrise Bank is not clearly specified, and the current status of the other three defendants in the case—Kedar Singh, Subodh Joshi, and Rabindra KC—is also unavailable.
