SC to deliver verdict on Chudamani Sharma case on June 19

KATHMANDU, June 6: The Supreme Court (SC) will deliver its verdict on June 19 in the corruption case against former Inland Revenue Department Director General Chudamani Sharma and others, whom the Special Court convicted.

A joint bench of Justices Saranga Subedi and Tek Prasad Dhungana is hearing the case, which also involves former Tax Settlement Commission officials-then Chairman Lumbdhwaj Mahat and members Umesh Prasad Dhakal and Chudamani Sharma. Since the court consolidated related cases against Mahat, Dhakal, Sharma, and others, it plans to issue a single verdict for all.

Earlier, the SC ordered the collection of evidence and submission of written arguments. After facing repeated delays and being deemed 'not suitable for review,' the court resumed hearings on April 29 (Baisakh 16).

The SC sentenced the three former Tax Settlement Commission officials—Lumbdhwaj Mahat, Umesh Prasad Dhakal, and Chudamani Sharma—to nine years in prison each. It also imposed fines and compensation totaling Rs 6.16 billion. According to the Special Court's ruling, each defendant must pay Rs 6.164 billion in fines and compensation.

After failing to pay the fines and compensation ordered by the court, the authorities imprisoned them. They then filed appeals at the SC and submitted a habeas corpus petition claiming unlawful detention. The SC rejected their request for release in response to the habeas corpus petition. The court consolidated and heard all the cases, including the appeals and writ petitions, together.

The law requires appellants to pay the fines and compensation set by the lower court before filing an appeal with a higher court. If they do not pay, the court keeps them in custody.

Because the fines were substantial, the authorities imprisoned all three at Dillibazar Jail. They chose to remain in custody voluntarily to file their appeals. However, they also filed a habeas corpus writ petition at the SC, arguing that their detention was unlawful.

The Commission for the Investigation of Abuse of Authority (CIAA) filed a corruption case on June 23, 2021 (Asar 9, 2078 BS), demanding Rs 1.332 billion in compensation.

The CIAA alleged that on January 5, 2015 (Magh 22, 2071 BS), officials exceeded their jurisdiction under the Tax Settlement Commission Act, 1976 (2033 BS), and deliberately caused financial loss through corruption.

Based on evidence, the SC ruled that the former officials of the commission arbitrarily granted tax exemptions amounting to Rs 1.332 billion in bad faith by consulting only among themselves.