Kathmandu, April 3 (IANS): Nepal's intelligence agency, the Central Investigation Bureau (CIB), has arrested a person accused in the 1995 murder here of an Italian national.

A gang of 13 men, led by Tashi Gurung, had killed Carraro David at the Thamel-based Reggae pub following a dispute after they harassed his girl friend on October 13, 1995, The Kathmandu Post reported.

Police on Sunday said Gurung -- who holds a US Green Card and had been on the run -- was arrested a week ago from Kathmandu. He came back to Kathmandu around three years ago.

"The members of Tashi's gang had been absconding following David's murder," said CIB Chief Director Inspector General Nawa Raj Silwal.

"As many as eight accused are still on the run," he said.

It was found that Tashi had flown to the US one-and-half years after the incident.

The number of Italian tourists dropped sharply following David's murder as the incident sent a bad impression about Nepal in that country.