Kathmandu: In a landmark move, the largest financial crimes prosecution in Nepal’s history has been filed at the Special Court against 39 defendants. Prosecutors are seeking a collective fine of Rs 53 billion and prison sentences ranging up to 15 years, signalling a rigorous crackdown on high-level corporate malpractice.
Based on an exhaustive investigation by the Department of Money Laundering Investigation, the Office of the Government Attorney has levelled charges against 35 individuals and four corporate entities. The list of defendants is notably headlined by prominent businessmen Deepak Bhatta and Sulav Agrawal, both of whom are accused of orchestrating large-scale illicit financial operations.
The indictment places the heaviest burden on the primary accused, Deepak Bhatt, from whom the state is seeking to recover Rs 26.63 billion in laundered funds. In addition to the recovery of this principal amount, the prosecution has demanded that he be slapped with a fine totalling double that figure, accompanied by a 15-year prison sentence.
In a similar vein, the department has filed a recovery claim against Sulav Agrawal for Rs 25.59 billion. The 39 defendants in this sprawling case have been categorized according to the specific amounts they are alleged to have laundered, with the prosecution demanding that each individual or entity pay a penalty twice the value of their respective illicit gains.
The investigation into the defendants’ activities revealed a sophisticated and organized scheme involving the systematic misappropriation of bank loans and the illegal diversion of insurance premiums into the stock market. To secure billions in profits, the group reportedly manipulated the market by using fraudulent IP addresses to artificially and unnaturally inflate share prices.
To hide the origins of this illegal wealth, the department claims the defendants employed a complex process of “layering.” This involved funnelling illicit gains through the purchase of real estate and luxury vehicles, as well as the establishment of numerous shell companies designed to give the dirty money a veneer of legitimacy.
Invoking Section 30 of the Money Laundering Prevention Act (2008), the government attorney has requested the court to impose the maximum penalty of double the laundered amount. Under this provision, if Deepak Bhatta is found guilty, his individual fine alone would exceed Rs 53.26 billion.
Citing the gravity of the offences and the degree of involvement, the prosecution has asked for jail terms between two and 15 years for the various defendants. Furthermore, the state has moved to confiscate all assets acquired through these illegal means, including millions of shares in insurance companies, significant cash balances held at Siddhartha Bank and Global IME Bank, and a vast array of luxury cars and real estate properties.
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