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Nagarjun Mayor Basnet suspended after corruption and money laundering cases

Mohan Bahadur Basnet, the mayor of Kathmandu's Nagarjun Municipality, has been automatically suspended from his post.
By Republica

KATHMANDU, Dec 30: Mohan Bahadur Basnet, the mayor of Kathmandu's Nagarjun Municipality, has been automatically suspended from his post.


The Commission for the Investigation of Abuse of Authority (CIAA) filed separate cases against Mayor Basnet at the Special Court on Sunday on the charges of corruption and money laundering, leading to his automatic suspension.


Section 33 of the Prevention of Corruption Act, 2059 BS, and Section 27 of the Asset (Money) Laundering Prevention Act, 2064 BS, mandate automatic suspension.


The law considers individuals accused of both offenses automatically suspended until a final decision is made.


CIAA Spokesperson Devi Prasad Thapaliya clarified that the law mandates suspension following the filing of the case. The Prevention of Corruption Act classifies public representatives as civil servants.


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The law defines a public servant as an individual who holds a public office according to the prevailing laws.


After registering the case, investigation officer Thapaliya stated that they would notify the municipality through correspondence.


“As soon as they registered the case, he was automatically suspended from his post. The investigation officer must inform the municipality about the suspension,” he said, adding a letter to the same effect was sent to the municipality yesterday,” he said.


The CIAA has filed cases against Mohan Basnet, his wife Urmila Basnet, and Raju Prasad Kandel. It has also filed cases against two other companies.


Raju Prasad operates Padma Colony Pvt Ltd and Padma Merchant Company Pvt Ltd, and the CIAA has filed cases against both these companies as well.


The CIAA has demanded a compensation of Rs 92.25 million from Mohan Basnet, his wife and Kandel in the corruption case. Similarly, they have demanded compensation of Rs 131.27 million in the money laundering case from all three individuals.


According to the CIAA, Basnet abused his position and accepted a bribe from Raju Prasad Kandel. Raju Prasad also operates Padma Colony, Padma Merchant, and Jagatguru Kripalu Pratisthan Nepal.


Investigators found that he had provided tax exemptions to the Jagatguru Kripalu Pratisthan Nepal from the municipality under various headings with the intention of taking bribes. They also found that the municipality had made agreements for foreign aid worth Rs 7.48 billion from individuals and organizations.


Basnet paid Rs 37.2 million to landowners and facilitated Jagatguru Kripalu Pratisthan Nepal’s acquisition of land for the temple through a land agreement.


The CIAA stated that the Basnet couple received a bribe for carrying out such work. Investigators found that Rs 21.57 million were deposited into the Basnet couple's accounts. They also found that the couple acquired land worth Rs 68.2 million.


The CIAA's report revealed that Raju Prasad spent Rs 2.4 million for his son's wedding party at a hotel.


 

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