Major Corruption Cases Nepal 2026

The Special Court acquitted former Nepal Telecom managing director Sunil Paudel and 17 others of corruption charges related to the company's billing system upgrade, dismissing allegations of financial irregularities by the Commission for the Investigation of Abuse of Authority.

Chief Commissioner Prem Kumar Rai of the Commission for Investigation of Abuse of Authority is implicated in multiple corruption scandals across ministries, including aircraft procurement, land acquisitions for Nepal Oil Corporation and Bhairahawa airport, and a fake refugee case, with the Special Court criticizing selective prosecution involving him.

Kathmandu District Court convicted prominent politicians and officials, including former deputy prime minister Top Bahadur Rayamajhi and ex-home minister Bal Krishna Khand, in Nepal's largest corruption case involving a fake Bhutanese refugee scam that defrauded victims of at least Rs 288 million; sentencing is scheduled for July 2026.

Nepal's Public Accounts Committee scheduled a discussion on alleged irregularities in passport printing contracts awarded to German firms Veridos and Muhlbauer, amid ongoing corruption allegations and CIAA charges against key officials including the Department of Passports' Director General.

The Special Court sentenced former Telecommunications Authority officials Digambar Jha, Dhanraj Gyawali, and Tikaprasad Upreti to imprisonment and fines for corruption in the Terramax procurement, with sentences ranging from six months to one year and fines of Rs 50,000 each.

A public debate intensified in Nepal over whether judges' asset declarations should be publicly disclosed, with the judiciary resisting citing legality and security concerns, while referencing international transparency trends such as India’s Supreme Court mandate for online disclosure.

The Rastriya Swatantra Party-led government completes 100 days, marked by high-profile arrests including former PM KP Sharma Oli and ex-Home Minister Ramesh Lekhak, alongside renewed investigations into past cases such as the Narayanhiti massacre under Home Minister Sudhan Gurung’s direction.

Police arrested former CPN-UML lawmaker Laxmi Mahato Koiri in connection with the 2015 murder of Armed Police Force Assistant Sub Inspector Thaman BK, following a five-year sentence by the Janakpur High Court.

Nepal police launched a nationwide campaign to remove illegal tinted window films from vehicles to improve crime prevention and road safety, issuing tickets and referrals for black film violations linked to criminal activities and surveillance issues.

Nepali Congress criticized corruption in passport printing and government interference in constitutional bodies, demanding an impartial investigation into financial irregularities and allegations of pressure on Department of Passports officials to favor costly suppliers.

The Commission for the Investigation of Abuse of Authority filed corruption charges against the then acting chief administrative officer of Champadevi Rural Municipality and others for misappropriation related to a water supply project, with property claims worth NPR 1.85 million against contractor Prakash Nachiring Rai.

The Supreme Court upheld the conviction of former Dairy Development Corporation MD Dr. Shatrughna Prasad Sah for illegally acquiring approximately 6.82 million rupees, sentencing him to nine years imprisonment and an equivalent fine.

Former minister Mohan Bahadur Basnet and 16 others faced a corruption case hearing over unauthorized decisions and alleged collusion in the Terramax technology procurement by Nepal Telecommunications Authority, with accusations involving Rs 3.51 billion in irregularities.

Nepal's Supreme Court ordered the government to explain the stalled investigation into Nepal Airlines' acquisition of six Chinese-built aircraft causing significant financial losses and operational failures since 2020.

The Special Court in Kathmandu granted bail to five individuals involved in the alleged e-passport procurement corruption case, including former Department of Passports officials and a company representative, with bail amounts between Rs 300,000 and Rs 500,000; two others were released on recognizance without bail.

The Special Court granted bail amounts between Rs 300,000 and Rs 500,000 to several top officials accused in the e-passport corruption case amid ongoing constitutional and diplomatic controversies.

Nepal’s Supreme Court scheduled a hearing on June 30 for the habeas corpus petition filed by CPN-UML Vice-chair Bishnu Prasad Paudel’s wife, challenging his detention on money laundering charges. Paudel remains in custody since June 22.

Nepal's passport procurement corruption case triggered a governance crisis marked by legal deadlock, administrative paralysis, and diplomatic tensions. Conflicting positions between the Prime Minister's Secretariat and the Ministry of Foreign Affairs worsened institutional discord amid a critical passport booklet shortage.

Nepal's government decided to wait until July 19 before deciding to continue contracts with German firms Veridos and Muehlbauer for biometric passports amid ongoing corruption investigations and concerns over delivery timelines. The government currently meets only half the daily passport demand from a reduced stock of 38,000 booklets, exacerbating the passport shortage issue.

The Special Court extended the remand of former Finance Minister and CPN-UML Vice-chair Bishnu Prasad Paudel by three days amid an ongoing money laundering investigation. Paudel was arrested on June 22 in Surkhet and is under Supreme Court habeas corpus petition challenge.

Former Minister Rajkumar Gupta and six others faced a postponement of their corruption case hearing over a Pokhara land deal bribery case involving 78 lakh rupees in alleged bribes due to extended bail hearing deliberations.

Nepal's Supreme Court ordered an investigation into the nearly 15-year-old purchase of six Chinese aircraft by Nepal Airlines Corporation, which resulted in multi-billion rupee losses and has involved political interference from former high-ranking officials. The aircraft have been inactive for over a decade, raising concerns of corruption and administrative negligence.

Nepal's Parliament passed the Prevention of Money Laundering (Third Amendment) Bill 2083 aiming to remove Nepal from the international 'Grey List' for money laundering within two years through improved governance and strict implementation.

Nepali citizens were defrauded by online scammers offering fake free broadcasts of the FIFA World Cup 2026 via social media, with victims losing over Rs 2.29 crore across 115 complaints. The Police Cyber Bureau is investigating the fraud involving malicious software.

Nepal's passport department stock dropped below 45,000 booklets while approximately half a million passports remain unused due to a corruption case involving German firms Veridos GmbH and Muehlbauer. This shortage complicates Nepal's ability to meet passport demand amid ongoing diplomatic tensions with Germany over the scandal.

Nepal announced amendments to the Civil Criminal Procedure Code requiring summons before arrest in non-serious crimes, reducing custody durations, and allowing settlements in eight offenses including fraud and foreign employment cases.

FIFA suspended the All Nepal Football Association due to ongoing governance issues and corruption scandals, including involvement of former president Ganesh Thapa, culminating in sanctions and a 10-year ban on Thapa.

Nepal Police arrested 18 operators from 15 unregistered education consultancies in Kathmandu Valley as part of efforts to enforce registration laws and prevent fraud in the education sector.

The German government summoned Nepal's Chargé d'Affaires to express concerns over the corruption case involving Veridos in Nepal’s e-passport project. German officials criticized charges against Veridos as baseless and warned of potential legal and financial risks from premature contract termination amid ongoing court proceedings.

Ajeya Raj Sumargi's passport was suspended by Nepal's Department of Immigration amid a renewed probe into money laundering involving offshore companies and illicit fund transfers totaling about Rs3.5 billion. The investigation highlights links to tax havens such as Cyprus and the British Virgin Islands.

The German Foreign Ministry summoned the Nepali Embassy’s acting ambassador to discuss the passport printing corruption investigation involving German firms Veridos and Mühlbauer. This diplomatic engagement reflects ongoing international concern over Nepal's passport procurement scandal.

Youth in Mugu district launched the 'Root Out Corruption Campaign' in Surkhet to combat corruption, misuse of resources, and development delays, highlighting Rs1.30 billion in financial irregularities in local governments.

Former Prime Minister KP Sharma Oli directed the division of a multi-billion-rupee e-passport procurement project into two contracts awarded to German firms linked to ruling parties, fueling investigations into institutional corruption and procurement law violations.

A habeas corpus petition was filed in Nepal’s Supreme Court challenging the arrest of CPN-UML Vice Chair Bishnu Paudel over a money laundering case, claiming his detention lacked evidence and was illegal.

The Nepalese government is preparing to amend the Foreign Employment Act to address corruption and syndicate issues, including fixing policy traps like the 'Free Visa Free Ticket' system to improve worker security.

Court debated extending the investigation period on former Deputy Prime Minister Bishnu Prasad Paudel regarding money laundering charges, with legal counsel advocating investigation without custody and citing no flight risk.

The Special Court remanded CPN-UML Vice-Chairman Bishnu Prasad Paudel to seven days custody on money laundering charges amidst political condemnation and calls for release.

Nepal remains on the Financial Action Task Force grey list due to continued weak enforcement in anti-money laundering and counter-terrorism financing. This status increases banking sector costs and scrutiny, potentially slowing remittances, imports, and foreign investment, with persistent compliance gaps in supervision and illicit asset tracing.

Nepal's Commission for the Investigation of Abuse of Authority filed a Rs10.13 billion corruption case against 18 defendants, including top passport officials and two German companies, related to irregularities in the electronic passport procurement contract. Allegations involve collusion, manipulation of tender criteria, and causing financial loss to the state.

The Commission for the Investigation of Abuse of Authority filed a Rs 10.13 billion corruption case against 16 individuals and two German companies linked to irregularities in the e-passport procurement contract, involving collusion and tender manipulation causing state financial loss.

The Commission for Investigation of Abuse of Authority filed a 10.13 billion rupee corruption case against Tirtha Raj Aryal and 17 others over irregularities in e-passport procurement involving government officials and foreign companies.

The Commission for Investigation of Abuse of Authority filed a corruption case against former Foreign Minister Arzu Rana Deuba related to an 8 billion rupee passport printing contract awarded to German firms.

Nepal remains on the Financial Action Task Force grey list due to insufficient measures against money laundering, impacting foreign trade costs, remittance fees, and foreign investment trust.

Nepal remains on the Financial Action Task Force grey list due to ongoing deficiencies in anti-money laundering and counter-terrorism financing measures, with the FATF urging improvements in risk understanding, financial sector supervision, and prosecution efforts.

Nepal's Rs 8.5 billion electronic passport project faces a crisis over alleged technical non-compliance by German contractors Veridos and Mühlbauer, prompting formal briefing to Germany’s Federal Foreign Office and raising risks of international arbitration and foreign investment damage. The project is near full operation with 550,000 passports issued and system integration complete.

Koshi Province's Public Accounts Committee discussed policy corruption and technical negligence in infrastructure projects, focusing on the incomplete Chuhar bridge and calling for a parliamentary inquiry and fund recovery.

Nepal's Commission for the Investigation of Abuse of Authority was pressured by Prime Minister Balendra Shah’s advisers to expedite the passport procurement irregularities investigation, leading to arrests including the Department of Passports Director General. The probe centers on German firms Veridos GmbH and Muehlbauer amid allegations of procurement violations.

A formal complaint was filed alleging misappropriation of government laptops and mobile phones at the Koshi Province Chief Minister's Office, demanding an impartial investigation and disclosure of government property status.

Nepal’s Supreme Court faces over 27,000 pending cases, some unresolved for more than seven years, due to a shortage of justices and frequent hearing postponements. Legal experts call for judicial reforms including increasing the number of justices and limiting court jurisdiction.

The Prime Minister's Office instructed the Commission for the Investigation of Abuse of Authority to arrest officials involved in the electronic passport procurement scandal, sparking debate over executive overreach and separation of powers. Allegations include the misappropriation of about 8 billion rupees under the influence of then Foreign Minister Arzu Rana Deuba.

Nepal's asset scrutiny commission received only about 10,000 filings out of an estimated 25,000 expected from officials, facing legal and procedural resistance from former judges who challenged the commission's constitutionality and urged a boycott.

Nepal's National Assembly approved the Anti-Money Laundering (Third Amendment) Ordinance to enhance financial transparency and combat serious financial crimes amid risks of blacklisting by the Financial Action Task Force.

Finance Minister Dr. Swarnim Wagle announced the establishment of the Property Probe Commission to investigate assets of political and public office holders and recommend actions if illegal property is found. The commission will operate without interfering with the constitutional mandate of the Commission for the Investigation of Abuse of Authority (CIAA).

The Commission for the Investigation of Abuse of Authority summoned former Foreign Minister Arzu Rana Deuba for questioning related to alleged corruption in the passport procurement contract worth nearly Rs 8 billion; she is currently abroad for medical treatment but willing to cooperate.

Former Inland Revenue Director General Chudamani Sharma faces corruption and illegal wealth acquisition cases involving tax exemptions exceeding 10 billion rupees, with related proceedings ongoing at the Special Court.

Nepal's Commission for the Investigation of Abuse of Authority arrested four individuals linked to irregularities in an Rs 8 billion passport procurement contract involving German companies. Investigations involve over 35 individuals, including senior officials from multiple ministries, concerning contract failures and alleged legal manipulations.

Two more individuals, including Munindra Raj Malla, Nepal representative of German firm Veridos, and former accounting officer Tulsiprasad Acharya, were arrested by the Commission for Investigation of Abuse of Authority on passport printing irregularities. The Special Court granted a 3-day remand for further investigation.

Former Prime Minister Sher Bahadur Deuba and his wife sought safe passage from Nepal's Money Laundering Investigation department amid probe allegations, denying evasion and requesting no arrest warrants; Interpol declined Nepal's Red Notice requests.

Tirtha Raj Aryal, Director General of Nepal's Department of Passports, was arrested by the Commission for the Investigation of Abuse of Authority for corruption linked to a Rs 7.66 billion e-passport procurement contract awarded to German firms despite technical deficiencies in one bidder's proposal.

Tirtha Raj Aryal, Director General of Nepal's Department of Passports, was arrested by the Commission for the Investigation of Abuse of Authority for alleged irregularities in a passport procurement contract involving businessman Siddhartha Thapa.

Kathmandu District Court continued five days of hearings in the fake Bhutanese refugee case involving multiple accused, including former political leaders, charged with forgery, fraud, and organized crime. The case alleges extortion by falsely designating Nepali citizens as Bhutanese refugees.

The Pashupati crematorium machine purchase corruption case involving 14 defendants, including former member secretary Dr. Milan Kumar Thapa, was listed for the 13th hearing at the Special Court. The case alleges inflated cost estimates and bypassing of procurement procedures.

Suraj Krishna Shrestha, operator of ISKCON Budhanilkantha, was arrested for child sexual abuse and physical torture at the Bhaktivedanta Gurukul; another accused remains absconding in India.

Finance Minister Dr. Swarnim Wagle stated that Nepal has been under the influence of vested interest groups for 10–15 years and announced a government campaign with a five-year plan to eradicate economic irregularities, amid ongoing investigations of a major financial scandal exceeding 1 kharba rupees.

Nepal's largest money laundering case worth over Rs 115 billion was filed at the Special Court against 39 individuals and companies involved in securities, insurance, and banking sectors. Deepak Bhatta is the prime accused with Rs 26.63 billion claimed against him and is in police custody.

Investigations uncovered a multi-billion rupee money laundering and securities fraud network led by Deepak Bhatta and associates, involving Rs545 million disguised as land advances and illicit loan repayments linked to Jagdamba Steels violating banking regulations.

The Special Court directed submissions of arguments in the corruption case against former Nepal Doorsanchar Company MD Sunil Poudel and 18 others, relating to alleged financial irregularities during a billing system upgrade at Nepal Telecom.

The Ministry of Education and Sports formed a three-member committee to investigate forged documents used in study visa recommendations and suspended related visa processes pending results.

Seven CEOs of reinsurance and micro-insurance companies, including former Insurance Authority chairmen Madan Dahal and Sharad Ojha, were suspended due to their involvement in the Deepak Bhatta money laundering case.

Hearings in the major fraud case portraying Nepalis as Bhutanese refugees continued in Kathmandu District Court, nearing final stages. The case involves 30 accused persons, including notable politicians, charged with forgery, fraud, and state crimes.

Ten foreign nationals obtained student visas in Nepal using forged documents from Balmiki Campus; authorities arrested two suspects as the investigation into visa fraud continues.

Kathmandu District Court commenced continuous hearings in the fake Bhutanese refugee scam involving 30 accused, including former ministers and officials charged with organized fraud and document forgery. The scam promised false resettlement in the U.S., defrauding hundreds across Nepal.

Nepalese lawmakers demanded a high-level parliamentary investigation into alleged customs irregularities and manipulation of vehicle seat capacities causing substantial revenue losses.

Finance Minister Dr. Swarnim Wagle expressed readiness to face investigation over alleged budget preparation errors and tax changes, attributing issues to technical mistakes rather than policy corruption.

Reports highlighted Nepal's deep-rooted governance issues including systemic corruption, political culture prioritizing individuals over institutions, bureaucratic capacity crises, and lack of accountability hampering good governance efforts.

The CPN (UML) opposition party demanded a parliamentary investigation into unauthorized tax rate changes in the finance bill and Prime Minister Balendra Shah's remarks, alleging economic crimes linked to the Chinese electric vehicle BYD case.

Nepal's Commission for Investigation of Abuse of Authority began probing Rajesh Bajracharya, private secretary to UML Chairman KP Sharma Oli, for illicit asset acquisition related to a land leasing bribery case.

The Nepal government formed a joint investigation committee including Finance Ministry, Customs, Police, and Armed Police Force representatives to investigate the seizure of 779 electric vehicles at the Korala border on suspicion of revenue evasion and customs violations.

Differences in Nepal's legal framework cause some convicted corrupt officials to lose pensions if convicted before retirement, while others convicted after retirement retain pensions, highlighting legislative gaps.

The detention hearing for Tulsi Adhikari, charged with money laundering and fraud involving over Rs65 million, began at Lalitpur District Court following his arrest in Thailand and transfer to Nepal.

The Supreme Court scheduled a hearing for the corruption case against former CIA Commissioner Rajnarayan Pathak involving bribery linked to Nepal Engineering College irregularities. Pathak resigned amid impeachment fears after evidence of a 78 lakh rupees bribe emerged.

Om Prasad Pandey, chair of Ram Janaki Health Foundation, was arrested for misusing Prabhu Bank loans through shell companies, violating banking laws with funds obtained without detailed project reports.

Former Senior Superintendent of Police Ganesh Regmi alleged misuse of Nepal's money laundering investigations for personal and political vendettas, citing premature publicization of cases and lack of confirmed predicate crimes.

The Ministry of Land Management, Cooperatives, and Poverty Alleviation expanded investigations into irregularities in cooperatives, requesting clarifications from 14 former officials and employees following a report by the Commission for Investigation of Malpractices in Cooperatives.

Intermediaries defrauded the Nepalese state treasury by inflating electronic passport procurement costs through variation orders exceeding 1.50 billion rupees, avoiding competitive tenders and transferring commissions offshore.

More than 250 complaints were filed to Nepals Asset Investigation Commission against high-ranking officials, covering assets spanning 2062/63 BS to 2082 BS fiscal years, including former prime ministers and government employees.

The Nepalese government was criticized for inaction on a widespread pre-IPO share scam involving illegitimate share sales at premium prices and alleged collusion within the Securities Board of Nepal.

An investigation committee submitted a 45-page report on former Home Minister Sudhan Gurung to Prime Minister Balen Shah, addressing allegations of undisclosed business ties and financial misconduct.

Tulsi Adhikari, a TikTok influencer, was arrested in Thailand following an Interpol Red Notice and brought to Nepal facing fraud and money laundering charges related to defrauding Rs65.2 million.

Authorities uncovered a conspiracy involving former aviation chief Pradeep Adhikari, including threats and money laundering aimed at pressuring Nepals anti-corruption chief amid major infrastructure corruption probes.

A government commission found Nepal's cooperative sector in crisis due to financial irregularities, weak regulation, and lack of coordination among government levels affecting governance.

Nepal Police's Central Investigation Bureau directed the Securities Board of Nepal to freeze shares and gather investment details of 56 individuals linked to an investigation under the Securities Act involving Deepak Bhatt.