Nepal’s Biggest Money Laundering Case Filed Against 86 People

A major money laundering case linked to Nepal’s banking and share market sector has reached the courts, with cases filed against 86 people. The Central Investigation Bureau and the Department of Money Laundering Investigation have accused individuals connected to securities, insurance and banking transactions of earning illegal benefits and laundering money. Cases have been registered at the Special Court, Patan High Court and Kathmandu District Court. Among the main accused are Deepak Bhatt, Shankar Lal Agarwal, Sulabh Agarwal, Sahil Agarwal, Shekhar Golchha, Raj Bahadur Shah and Amit Mor. According to the charge sheets, the accused have denied wrongdoing and placed blame on one another.

According to prosecutors, the case began after Jagdamba Steels allegedly misused working capital loans taken from Nepal Investment Bank. The charge sheet claims that Rs 545 million was transferred through Mega Investment Bank to Deepak Bhatt’s personal account. Bhatt described the amount as an advance payment for land, but investigators have claimed the money was linked to tax manipulation and illegal financial arrangements. The charge sheet also alleges that the money was later routed through Infinity Holdings and invested in Himalayan Reinsurance. Investigators say Rs 752.6 million was later returned to Jagdamba, but the land transaction documents were not properly verified and the source of the money was not clearly explained. The investigation also points to alleged round-tripping of funds through members of the Agarwal family, share transactions worth billions through Bhrikuti Stock Broking, and the use of funds from prominent business figures in the share market. The Special Court has begun preliminary hearings in the money laundering case against Bhatt, Agarwal and others, while the court will decide whether the accused will remain in custody, be released on bail or be freed on general dates after their statements are completed.