India, Nov. 7 -- Paraguay's former president Santiago Pena was placed under house arrest on Friday, days after being removed from office following a major banking crisis that triggered widespread public anger. He faces allegations of breach of trust linked to the collapse of Ueno Bank, which was taken over by the country's Central Bank amid concerns about its financial stability.

Although Pena offered to resign following the banking crisis, lawmakers continued with impeachment proceedings to remove the legal immunity he enjoyed as a former president. The move could expose him to further legal action over his alleged involvement in the bank's collapse.

Pena had promised to defend himself against the allegations but did not appear before ...