However, former employee Om Prakash Baitha was released on bail, said the District Police Office.
Number Four bench of the district court issued an order asking Baitha to submit Rs 500,000 as bail for the release while others were remanded to custody.
As Unnitthan and Verma are Indian citizens, they cannot be released on bail, said SI Basu Dev Khatiwada, police spokesperson in the district.
Arrested on charge of bearing forged document and stamp about the procurement of a bus, the police had produced them before the court for the hearing whether they could be released or remanded in custody.
The CEO and General Manager were arrested after they were found registering a Mahindra Scorpio van of 2005 model with seven seats as a van of 2007 model with nine seats.
The van was recovered after the payment of loan.
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