KATHMANDU, Oct 30: A controversy surrounding Inam Sapkota, who has been in police custody for three weeks, has shaken the ruling Rastriya Swatantra Party (RSP), the judiciary and Nepal Police, with allegations linking him to senior officials across these institutions.
The investigation has also exposed growing differences between RSP chair Rabi Lamichhane and Prime Minister Balendra Shah over how to deal with officials whose names have surfaced in the case.
The government has maintained silence, while senior RSP leaders have stepped up consultations. Lamichhane met Shah on Wednesday and Speaker Dol Prasad Aryal on Thursday amid growing speculation over the political fallout.
Shah and his secretariat are reportedly dissatisfied with several senior officials, including former Chief Justice Cholendra Shumsher Rana, Chief Justice Manoj Kumar Sharma, Inspector General of Police Dan Bahadur Karki and Attorney General Narayandatta Kandel.
Sapkota's name emerged after the government brought former Chief Justice Rana to a police office around midnight on September 26 over allegations that he had tried to influence the case involving businessman Deepak Bhatt, who is in judicial custody on money laundering charges. Investigators reportedly found suspicious exchanges between Rana and Sapkota on Rana's mobile phone.
Police initially detained Sapkota on charges of indecent behaviour but have since expanded the investigation to possible violations of the Nepal Rastra Bank Act and money laundering.
Screenshots purportedly obtained from a forensic examination of Sapkota's mobile phone suggest that he was in contact with IGP Karki, Chief Justice Sharma and Supreme Court Justice Hari Phuyal. Other screenshots allegedly show money being collected in the names of Sharma and RSP lawmaker Bishwaraj Pokharel.
The Kathmandu District Police Range had sent Sapkota's phone to the police forensic laboratory for examination. The authenticity of the screenshots, some bearing the stamp of the Crime Investigation Department at Police Headquarters, has not been independently established.
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WhatsApp conversations between Sapkota and Justice Phuyal have also surfaced, reportedly discussing a pending court case and a proposed meeting at Hotel Himalaya.
Phuyal has acknowledged meeting Sapkota. Speaking to journalists on Thursday, he said Sapkota approached him using Prime Minister Shah's name. The meeting took place amid rumours of possible impeachment proceedings against Supreme Court justices, he said. Phuyal added that he informed the prime minister's secretariat after Sapkota started discussing a court case.
Chief Justice Sharma has denied knowing Sapkota or having any connection with him. In a statement, he rejected reports of financial transactions conducted in his name before he became chief justice.
The screenshots reportedly refer to accounts belonging to Nirajan Pandey at Bank of America and Kavita Pandey at Sanima Bank for deposits in the United States and Nepal respectively. They do not specify the purpose of the transactions.
The Supreme Court has called a full court meeting for Friday following reports linking Sharma and Phuyal to Sapkota.
RSP lawmaker Pokharel has also denied knowing Sapkota, saying he had never met him or conducted any financial dealings with him.
Meanwhile, the Kathmandu District Police Range has defended its handling of the forensic examination, saying the report was supposed to remain confidential and sealed.
Rift over police leadership
The controversy has also exposed differences between Shah and Lamichhane over the possible removal of IGP Karki.
Sources at the Prime Minister's Office say relations between Karki and members of Shah's secretariat, including chief adviser Kumar Ben, have deteriorated. Reports that the government had asked Karki to resign circulated on Wednesday and Thursday.
Lamichhane is reportedly opposed to an immediate change in police leadership. During his Wednesday meeting with Shah, he warned that unnecessary interference could send the wrong message within the police organisation. He argued that action against officials should rest on evidence and legal grounds.
Karki is already facing scrutiny over alleged financial irregularities in the procurement of election police uniforms. A parliamentary committee has formed a subcommittee to investigate the matter.
A source close to Shah said the government could take tough action if the inquiry finds Karki responsible. Some officials, though, have advised against removing him before the investigation concludes, warning that a premature change could affect security arrangements. Home Minister Sudan Gurung is also reportedly opposed to interfering with the police leadership.
The differences between Shah and Lamichhane extend beyond the police chief. Shah reportedly wants everyone linked to Bhatt brought under investigation, while Lamichhane insists that no one should face action without sufficient evidence.
Shah is also said to be dissatisfied with Chief Justice Sharma following information that Rana allegedly tried to influence judicial proceedings through his connections with the incumbent chief justice. Sharma's appointment despite being fourth in seniority had also attracted controversy.
The prime minister is reportedly unhappy with Attorney General Kandel, whose appointment drew criticism over his limited legal experience and long stay in the United Kingdom. Sources say Shah rarely meets Kandel despite his role as the government's chief legal adviser.
Police officials have also complained about pressure from the Prime Minister's Office to make arrests without adequate preparation.
"We are supposed to act on the government's instructions, but arrests must be backed by evidence and legal grounds. That is how cases can stand in court and lead to convictions. When direct orders to arrest people come without proper legal grounds, the police organisation ends up facing the controversy," a joint secretary at the Home Ministry said.
Police reject reports of pressure on IGP
Police Headquarters has rejected reports that the government was pressuring Karki to resign over his alleged links with Sapkota.
Karki held a virtual meeting with senior police officials on Thursday, warning against activities that could undermine the organisation's leadership. He reportedly dismissed reports that the government was preparing to remove him.
In a statement, his secretariat said reports of government pressure for his resignation could disrupt police operations and affect public security. It urged officers not to be misled by such claims.
The statement said Nepal Police remained committed to carrying out its duties in accordance with government directives and the law. It also warned of investigations and legal action against those deliberately spreading misinformation to weaken the security organisation and drag it into political controversy.
