Preparation to file case against Bhatta and 29 others

KATHMANDU, May 25: The Department of Money Laundering Investigation has forwarded an indictment against 29 individuals to the Office of the Government Attorney in Kathmandu, based on investigation reports provided by the Securities Board and the Insurance Authority.

While recommending prosecution against 29 people, including businessman Deepak Bhatta and Sulav Agrawal, on money laundering charges, the department has fixed a claim of around Rs 20 billion. The department submitted the investigation report to the government attorney’s office in less than two months, despite having legal authority to conduct investigations for up to 90 days.

Under the Money Laundering Prevention Act, the investigation report must be submitted to the court through the government attorney’s office within 90 days. Until then, individuals not arrested are to be presented as absconding accused. However, reaching the stage of filing a case in less than two months has raised suspicions that the investigation is incomplete. Based on the report, the government attorney’s office is preparing to file the case in court.

The Central Investigation Bureau (CIB) of Nepal Police is also conducting a parallel investigation into the same matter. A joint indictment by the CIB and the Department of Money Laundering Investigation is expected later. The CIB is also expected to recommend a separate case under banking offences.

The department has recommended action against Infinity Holdings chairman Bhatta, Jagdamba Holdings chairman Agrawal and his wife Subhi Agrawal, Shanker Group chairman Shankerlal Agrawal, Jagdamba Group chairman Shahil Agrawal, former FNCCI president Shekhar Golchha, Jawalakhel Group managing director Rajbahadur Shah, Himalayan Reinsurance CEO Upasana Poudel, Ramesh Corp vice-chairman Rohit Gupta, businessman Rishiraj More, Sandeep Chachan, Deepak Bansal, Indian citizen Upendra Hirawat, among others.

The chief attorney of the government attorney’s office, Somkanta Bhandari, said the indictment against Bhatta and others has been received and is under review. The department submitted the indictment after completing its investigation.

The government attorney’s office has not commented on whether the investigation is complete. Although it has the authority to return the report, it is preparing to file the case in court based on the same report. Only Bhatta and Agrawal are currently in custody; all others are absconding. The case is expected to be filed within a few days, according to a source at the attorney’s office.

According to sources, the accused are likely to be prosecuted under violations of insurance, securities, and share trading laws, with possible penalties ranging from two to ten years in prison, fines based on the amount involved, and confiscation of assets obtained from undisclosed sources.

Bhatta was arrested on April 2, and Agrawal on April 4. Shankerlal Agrawal, father of Sulav and chairman of Shanker Group, was arrested on April 3. After being kept in custody for two days, he was released on bail. Golchha was also arrested and investigated but was later released following a Supreme Court order.

The department has alleged that under Section 140 of the Insurance Act 2022 and Sections 3(1)(a), (b), and (c) of the Money Laundering Prevention Act 2008, the accused engaged in illegal activities, invested illegally obtained funds in the securities market and other sectors, and concealed the origin and nature of the proceeds of crime.

During the investigation, it was found that Bhatta used Rs 2.73 billion from Himalayan Reinsurance, Rs 220 million from Himalayan Investment Bank, Rs 160 million from Nepal Micro Insurance, Rs 250 million from HLI Large Cap Fund, and Rs 370 million from Himalayan Capsserve to purchase shares in his name, while More also received Rs 230 million.

Bhatta purchased 1,979,000 shares of Nepal Reinsurance, 1,125,000 shares of Guardian Micro Life, and 1,125,000 shares of Nepal Micro Life using public funds. The money withdrawn by Bhatta from public companies was routed through Bhrikuti Broker to More, after which the department recorded his statement. After giving his statement, he has gone out of contact. A case is being prepared against him while he is absconding.

Similarly, Sulav Agrawal has investments in Himalayan Reinsurance and eight micro-insurance companies. The department claims that individuals jointly invested in eight companies in an attempt to commit fraud.