Judicial Reforms and High-Profile Cases 2026

The Supreme Court issued a show cause notice to the government over uninvestigated billion-rupee losses from Nepal Airlines' purchase of grounded Chinese MA60 and Y12E aircraft. The petition seeks independent inquiry and accountability for financial losses and ongoing costs.

Nepal's Department of Immigration suspended Ajeya Raj Sumargi's passport amid renewed money laundering investigations involving offshore companies and illicit fund transfers totaling about Rs 3.5 billion.

A habeas corpus petition was filed in the Supreme Court challenging the arrest of CPN-UML Vice Chair Bishnu Paudel in a money laundering case, alleging illegal detention. The petition was submitted by Paudel's wife seeking his release.

Nepal remained on the Financial Action Task Force grey list, with calls to strengthen anti-money laundering and counter-terrorism financing measures. Authorities committed to reforms in risk management, banking supervision, and prosecution of illicit finance.

Nepal's Special Court registered the largest money laundering case valued over Rs 115 billion, targeting 39 individuals and companies; Deepak Bhatta faces Rs 26.63 billion claims and remains in police custody.

Investigations exposed a money laundering and financial fraud scheme involving Deepak Bhatta and associates, who manipulated billions through banking violations, securities fraud, and stock market dealings linked to Jagdamba Steels.

Despite the Supreme Court's ban on the Constituency Development Fund, several Nepalese provinces planned to allocate billions for projects selected by lawmakers in the 2026-27 budget, provoking criticism over political interference.

The Special Court ordered submission of argument notes in the corruption case against former Nepal Telecom MD Sunil Poudel and 18 others over financial irregularities in the billing system upgrade.

The Supreme Court directed the government to criminalise recruitment and use of child soldiers under 18, labeling it a serious human rights violation and ordering reforms for rehabilitation of former child combatants.

The Supreme Court scheduled a hearing on a writ petition challenging Nepal Airlines board member selection, issuing an interim order to halt appointments over merit concerns.

Kathmandu District Court continued hearings on a large fraud case involving false portrayal of Nepali citizens as Bhutanese refugees, with 30 accused including politicians, reaching final stages.

The Supreme Court introduced deadlines to expedite writ petition handling, requiring resolution within 24 hours for registrable cases and disposal within 48 hours for non-registrable cases.

The Supreme Court's Constitutional Bench scheduled a hearing on a writ petition challenging the first amendment ordinance related to the Constitutional Council's legality.

The Supreme Court upheld the acquittal of Judge Bhuwan Giri in a marital rape case, confirming the High Court Patan's verdict.