Intensified Money Laundering Probe Targets Former Nepali Leaders
Kathmandu, March 31 — A significant money laundering investigation has been launched against three former prime ministers of Nepal: Sher Bahadur Deuba, KP Sharma Oli, and Pushpa Kamal Dahal. Alongside them, former ministers Arzu Rana and Deepak Khadka, as well as their family members, are also under scrutiny. The probe is being conducted by the Department of Money Laundering Investigation (DMLI) through the Central Investigation Bureau (CIB) of Nepal Police.
The investigation has reached a critical stage, with some suspects already in custody. On Sunday, Deepak Khadka was arrested, and the Kathmandu District Court granted him seven days’ custody for further investigation. Meanwhile, Oli and former home minister Ramesh Lekhak are under investigation for “offences against life” related to the suppression of the September 8-9 Gen Z-led protests. The court has remanded them to five days’ custody.
The probe into money laundering is ongoing, and it is being pursued alongside other charges. However, the family of former prime minister Deuba remains outside the country, raising questions about how the investigation will proceed.
Deuba Family Abroad for Medical Reasons
According to Bhanu Deuba, the personal secretary and nephew of former prime minister Deuba, the family is currently in Hong Kong for medical treatment. He stated that Deuba has a follow-up appointment this Thursday, while his wife, Arzu Rana Deuba, is undergoing treatment after doctors recommended knee surgery. Their return to Nepal will depend on medical advice, he added.
Deuba, along with his wife and son Jaiveer Singh Deuba, reportedly traveled via Singapore to Hong Kong. Immigration records show that Deuba left for Singapore on October 27, returning on November 14. Arzu later traveled to New Delhi on January 5 for personal reasons. In late February, ahead of scheduled elections, Deuba once again left for Singapore for treatment, with Arzu joining him from India.
Legal Procedures and Diplomatic Channels
With Deuba abroad, authorities have emphasized that the investigation will continue according to the law. Additional Inspector General of CIB, Manoj KC, stated that if arrest is necessary but the accused cannot be found, diplomatic channels and Interpol mechanisms will be used. He declined to comment on specific individuals but confirmed that the investigation is progressing.
The probe stems from evidence, including fragments of burnt currency notes recovered from the residences of Deuba, Dahal, and Khadka following the September unrest. Although Oli’s residence in Balkot was also torched, no burnt cash was reportedly found there.
Based on these findings and filed complaints, authorities launched a preliminary inquiry into possible money laundering, which has since moved into a detailed investigation. While Khadka is in custody and Oli is under detention in a separate case, the Deuba family remains abroad.
Impact on Political Landscape
During the protests, Deuba’s residence in Budhanilkantha was vandalized and set on fire, with reports that important documents, including passports, were destroyed. The couple were assaulted by demonstrators and later rescued by the army before receiving hospital treatment. They subsequently obtained new ordinary passports on September 19.
The couple’s travel coincided with political developments within the Nepali Congress, where internal disputes culminated in a leadership change following a Special General Convention led by general secretary Gagan Thapa. Deuba’s faction was ‘sidelined’ after the new leadership took charge.
Expanding the Scope of the Investigation
Authorities have also extended the investigation to relatives. Deuba’s son Jaiveer, nephew Prakash Bahadur Deuba, and Arzu’s brother Bhushan Rana are all reported to be abroad. Immigration records show that Jaiveer frequently traveled to Thailand and has not returned since early September. His current location is believed to be Hong Kong, though official records do not confirm his route.
Prakash Bahadur Deuba, a Sudurpashchim Provincial Assembly member, is believed to have traveled to India by land and then to the United States. He has not attended the Provincial Assembly since July 2025, and his salary and benefits have been suspended since February after prolonged absence.
Bhushan Rana had left the country prior to the September protests. The DMLI raided his residence in Jawalakhel, Lalitpur, on September 28, seizing documents and equipment, and conducted similar searches at other properties linked to the Deuba family.
Complex Nature of Money Laundering Investigations
Rup Narayan Bhattarai, former director general of DMLI, explained that money laundering investigations are complex and hinge on establishing the underlying offence and tracing how illicit funds were processed. If suspects are abroad, investigators may request their return, issue public notices, or seek an Interpol Red Notice.
However, he noted that repatriation depends on cooperation from the country where the suspect is located and the effectiveness of diplomatic engagement.
Krishna Prasad Paudel, former official at the Congress central office, said the couple’s return would depend on their medical condition. “They will return once treatment is completed. Their travel abroad is purely for health reasons,” he said.
Broader Government Initiative
The investigation comes amid the government’s broader push to examine the assets of former high-ranking officials. Under a 100-point governance reform plan introduced by the administration led by Prime Minister Balendra Shah, authorities have pledged to scrutinize the wealth of political leaders and officials who have held power since 1991.
The DMLI began preliminary inquiries six months ago, and the probe has now expanded to include multiple former prime ministers, ministers, and their families, marking one of the most extensive anti-money laundering investigations in recent years.
