KATHMANDU, June 11: The Special Public Prosecutor’s Office on Thursday filed a sweeping case at the Special Court against 39 individuals, including Infinity Holdings Chairman Deepak Bhatta and his partner Sulav Agrawal, alleging money laundering involving Rs 22.39 billion and seeking recovery of the claimed loss.
The case, initiated on the recommendation of the Department of Money Laundering Investigation (DoMLI), is based on investigations and inputs from the Securities Board of Nepal (SEBON) and the Nepal Insurance Authority (NIA). Authorities have accused the group of investing proceeds of criminal activity in the stock market and other sectors, concealing the origin and nature of funds, and carrying out transactions in violation of the Money Laundering Prevention Act, 2008, and relevant provisions of the Insurance Act, 2022.
Among those named are Jagdamba Holdings Chairman Sulav Agrawal and his wife Subhi Agrawal, Shanker Group Chairman Shanker Lal Agrawal, Jagdamba Group Chairman Shahil Agrawal, former FNCCI President Shekhar Golchha, Jawalakhel Group Managing Director Raj Bahadur Shah, Himalayan Reinsurance CEO Upasana Poudel, Ramesh Corp Vice Chairman Rohit Gupta, and several other businessmen and investors, including Indian national Upendra Hirawat.
Investigators allege that illicit funds were routed through investments in listed companies and other sectors, with layers of transactions designed to obscure the original source of money.
Money laundering case filed against four persons arrested on ch...
In a parallel development on the same day, a separate banking offence case was filed against Bhatta and three others at the Commercial Bench of the Patan High Court over alleged misuse of bank loans amounting to over Rs 421.4 million. The case is based on investigations by the Nepal Rastra Bank (NRB) and the Central Investigation Bureau (CIB) of Nepal Police.
According to the charge sheet, Jagdamba Steels Ltd had obtained working capital and short-term loans from multiple banks for business operations, but investigators claim the funds were diverted for unrelated purposes.
The prosecution alleges that forged documents were created to show the purchase of land in Sanepa, Lalitpur, in order to justify the loan transfers. On that basis, around Rs 450 million was moved from Jagdamba Steels’ account to Bhatta’s personal account and subsequently transferred to Infinity Holdings.
Investigators further say the funds were eventually used to acquire founder shares of Himalayan Reinsurance Ltd, while a network of accounts belonging to members of the Agrawal family was used to circulate the money and create the appearance of repayment to Jagdamba Steels.
Prosecutors have sought full recovery of Rs 421.4 million along with a penalty equal to the alleged amount. Under the Banking Offence and Punishment Act, 2008, the charges carry a possible prison sentence of six to eight years for offences involving amounts between Rs 100 million and Rs 500 million.
Shanker Lal Agrawal has been named as an accomplice, with prosecutors alleging he aided in concealing the offence. They have sought a three-to-four-year jail term and a reduced fine for him.
The prosecution has also requested arrest warrants for Shahil Agrawal and Shankarlal Agrawal, who are currently absconding, asking the court to direct police to produce them before proceedings.
