Kathmandu, July 4 -- The Central Investigation Bureau (CIB) of Nepal Police has arrested Subash Khatri for his alleged involvement in the multi-million-rupee fraud linked to Miteri Savings and Credit Cooperative, Lalitpur.

Khatri was apprehended following leads from Jyoti Bahadur Bhandari, a key accused recently extradited from Cambodia.

As the investigation deepens, authorities are also pursuing Jyoti Gurung, former wife of Nepali Congress leader Dhanraj Gurung, for her alleged role in misappropriating over Rs140.81 million in cooperative funds, in which Bhandari is also linked.

The CIB arrested Khatri on June 29.

The CIB has kept Bhandari and Khatri in custody and is conducting further investigation into the case.

Bhandari fled all...