Nepal’s biggest money laundering case worth over Rs 115 billion reaches Special Court

KATHMANDU, June 14: Nepal’s largest-ever money laundering and financial misappropriation case, involving over Rs 115 billion, has been filed at the Special Court, marking a major escalation in scrutiny of alleged organised financial crimes spanning the securities, insurance, and banking sectors.

The Department of Money Laundering Investigation (DoMLI), after a five-month probe, on Thursday filed a charge sheet against 39 individuals and several companies, claiming that more than Rs 106.25 billion was directly linked to illicit financial activities. Officials said the broader scale of suspected transactions exceeds Rs 115 billion.

According to the department, the case involves complex patterns of alleged share price manipulation, misuse of insurance funds, routing of money through brokerage firms, concealment of beneficial ownership through corporate structures, and layering of transactions to project illicit funds as legitimate assets.

At the centre of the case is businessman Deepak Bhatta, against whom the state has sought recovery of Rs 26.63 billion—the highest amount claimed against any individual. He is currently in police custody.

Another major accused, businessman Sulabh Agrawal, faces claims of Rs 25.59 billion, while additional claims have been filed against his wife Subhi Agrawal (Rs 3.96 billion) and son Krishiv Agrawal (Rs 328.3 million).

Investigators have also named executives and associates linked to stock broking firms, reinsurance companies, micro-insurance firms, and investment entities, alleging their involvement in facilitating or benefiting from the financial network under investigation. Former regulators, including ex-chairpersons of the Nepal Insurance Authority Sharad Ojha and Madan Dahal, have also been brought under scrutiny, with combined claims exceeding Rs 3.5 billion.

DoMLI has alleged that regulatory weaknesses and influence networks may have enabled the large-scale movement and concealment of funds within the formal financial system. The agency said the case reflects an organised structure of financial crime involving both private sector actors and regulatory institutions.

Beyond recovery of the disputed funds, the charge sheet seeks fines of up to double the claimed amounts under the Money Laundering Prevention Act, 2008. Analysts say the case could become a major test of Nepal’s financial governance and regulatory enforcement capacity.

Defendants and claim amounts