CHAPTER FOUR

CHAPTER- FOUR
SITUATION OF WHITE COLLAR CRIME IN NEPAL

White-collar crime, characterized by financially motivated, nonviolent crimes committed by

individuals, businesses, or government officials, poses a significant challenge to Nepal’s legal
and economic landscape. These crimes include fraud, embezzlement, bribery, money laundering,
tax evasion, and corruption, which collectively undermine public trust, impede economic growth,
and weaken institutional integrity.

In Nepal, the recognition and prosecution of white-collar crimes have gained prominence with
the establishment of specialized institutions such as the Special Court, the Attorney General’s
Office, the Anti-Money Laundering (AML) Unit, and the Revenue Investigation Department
(RID). These bodies play pivotal roles in investigating, prosecuting, and preventing complex
financial crimes. The Special Court primarily handles high-profile corruption and money
laundering cases involving public officials and influential individuals, aiming to expedite justice
in cases of significant economic offenses.

The Attorney General’s Office, serving as the chief legal advisor and public prosecutor, is
instrumental in prosecuting white-collar crimes, providing legal opinions, and ensuring
adherence to due process. Meanwhile, the AML Unit monitors and investigates suspicious
financial transactions to disrupt the flow of illegally obtained assets. The RID plays a crucial role
in detecting and prosecuting tax evasion and other fiscal offenses that constitute core elements of
white-collar crime.

Recent data analysis from these institutions reveals an increasing trend in white-collar crime
incidences, reflecting both improved detection capabilities and growing economic
vulnerabilities. For instance, Special Court case statistics show a rise in corruption and money
laundering prosecutions over the past five years, while AML reports indicate enhanced detection
of illicit financial flows. Similarly, RID data underscores significant challenges in addressing
tax-related offenses, often linked to broader schemes of financial fraud and concealment.

This chapter aims to provide an analytical overview of the current situation of white-collar crime
in Nepal, supported by quantitative data from the aforementioned agencies. By examining
prosecution trends, conviction rates, and enforcement challenges, this study seeks to illuminate
the strengths and gaps within Nepal’s legal and institutional framework in combating white-
collar crime. Ultimately, understanding this landscape is essential for formulating effective
policies and strengthening governance to uphold the rule of law and economic justice in Nepal.

4.1. Analysis of Special Court Of Nepal

4.1.1. Status of Case Intake, Disposals and Pendency in the Past Fiscal Year

A total of 69 cases were transferred in (carried over) from the previous fiscal year (080/081). In
addition, cases reported in previous fiscal years numbered 135 (078/079), 176 (079/080), and
216 (080/081) respectively — making a three-year average intake of 176 cases. Adding a 15%
increase to that average to estimate intake for the current fiscal year (081/082) results in
projected incoming cases of 203, giving a projected total of 272 cases for intake in 081/082.

For fiscal year 2080/081, the cases carried forward from prior fiscal years numbered 359, and
216 cases were reported in the same fiscal year, giving a total workload (total intake) of 575
cases. Of these, 506 were disposed (disposed/directed), leaving 69 cases pending. The annual
disposal target had been 443 cases; actual disposals numbered 506, which is 114.22% of the
target. Details are shown in Table 1.

Table 1 — Status of Case Intake, Disposals and Pendency

Category (Nature Intake Disposal Pending Transferred-in / Total

S.N.
of Cases) (Lagath) (Farchhaut) (Baunki) Carried-over Intake
Illegal possession
1 28 11 39 35 4
of property
Proceeds of crime
2 230 113 343 300 43
(illicit enrichment)
Forged/false
3 8 32 40 27 13
certificates
Bribery /
4 67 48 115 108 7
Corruption
Asset cleansing
5 (money- 26 8 34 32 2
laundering)
Re-advertised (re-
6 0 4 4 4 0
listed)
Total: 359 216 575 506 69

Note: The majority of cases filed with the Court are of specialized nature. Some cases require
more time for hearing than anticipated. Nevertheless, disposals in the past fiscal year exceeded
the target.

4.1.2 Five-Year Trend of Case Intake, Disposals and Pendency

The Special Court’s performance over the past five fiscal years is shown in Table 2.

Table 2 — Five-Year Status of Case Intake, Disposals and Pendency

 Disposal
Cr. Fiscal Year Total Disposal Disposal (as
Disposal Achievement (as Pending
No. (B.S.) Intake Target % of intake)
%)
1 2076/077 843 231 178 77.05% 21% 665
2 2077/078 792 860 135 15.7% 17% 657
3 2078/079 792 839 339 42.80% 42.80% 453
4 2079/080 629 590 270 45.76% 42.92% 359
5 2080/081 575 443 506 114.22% 88% 69

Key Trends:

Post-COVID-19 (2078/079), disposals increased by 154%.

Proceeds of crime cases dominated (113 cases in 2080/081).

4.1.3 Nature of Cases and Case-Type Distribution Over the Past Three Years

A detailed classification of cases by nature filed with the Court over the past three fiscal years is
presented in Table 3.

Table 3 — Three-Year Case-Type Distribution (by Nature)

A comparative summary of cases filed in the last three fiscal years before the Court indicates that
all categories of cases increased from 2078/079 to 2079/080. In the comparison of 2079/080 with
2080/081, cases of asset cleansing and illegal possession of property decreased; however,
proceeds-of-crime / illicit enrichment cases are evenly reported and the total number of filed
cases increased.

Illegal
Fiscal Proceeds of crime Forged Bribery / Asset
possession of
Year (illicit enrichment) certificates Corruption cleansing
property
2078/079 7 87 6 22 3
2079/080 13 113 8 31 11
2080/081 11 113 32 48 8

Under the Special Court Act, 2059 (B.S.), where the accused has cases pending, the Court has
the statutory power to auction cases older than six months. 1 The legal provision and the Special
Court’s Fourth Five-Year Strategic Plan (2081/082–2085/086) together estimate that of the
transferred-in cases (69) and the cases newly reported in 2080/081 (203 projected), 50% of the
203 (i.e., 102) together with 69 transferred cases — totalling 171 — can be disposed of if

1
Special Court Act, 2059 (Nepal) § 16(1)
maximum personnel, means and resources are applied. This makes implementation of Section 5
of the Special Court Act an essential facilitation.2

4.1.4 Monthly Distribution of Newly Filed Cases

The monthly distribution of newly filed cases over the past three fiscal years is summarized in
Table 4. In 2079 Asar (mid-year month) the highest number of cases filed was 26, while in the
corresponding months of Shrawan/Kartik the lowest number recorded was 2. Similarly, in
079/080 the maximum month was Asar with 28, and the minimum month was Kartik with 7. In
2080/081 the highest monthly filings occurred in Falgun and Chaitra (26 each), and the lowest in
Mangshir (9).

Because many accused were at large, arrest warrants were issued and extra efforts were needed
to secure hearings; in some instances, the lower courts could not take up warrants, so the Special
Court itself arranged for the service and remand hearings, contributing to a disposal count
exceeding the target (443), reaching 506 disposals (114.22%). Overall, 506 disposals out of 575
intake represent an 88% disposal rate.

Table 4 — Monthly Distribution of Newly Filed Cases (Selected Months)

Month 078/079 079/080 080/081

Shrawan 2 18 21
Bhadra 9 11 15
Ashwin 6 14 20
Kartik 2 7 10
Mangsir 13 13 9
Poush 8 14 11
Magh 9 17 15
Falgun 14 16 26
Chaitra 14 12 26
Baishakh 16 14 19
Jestha 16 12 23
Asar 26 28 21
Total 135 176 216

Hence, 216 cases were filed in 080/081. A five-year comparative trend of newly filed cases (by
number) is shown in Table 5.

Table 5 — Newly Filed Cases — Five-Year Summary

2
Special Court Act, 2059 (Nepal) § 5; Special Court, Fourth Five-Year Strategic Plan, 2081/082–2085/086 (B.S.)
(strategic planning document referenced in the source text)
 Fiscal Year (B.S.) Newly Filed Cases
2076/077 450
2077/078 127
2078/079 135
2079/080 176
2080/081 216

4.1.5 Case Disposal Activities

Case restoration and disposal are the principal activities of the Courts. The Court’s production of
disposals has shown a steady increase in recent fiscal years. The five-year disposal activity
summary is shown in Table 6.

Table 6 — Five-Year Case Disposals Summary

Fiscal Year (B.S.) Total Intake Disposal Pending

2076/077 843 178 665
2077/078 792 135 657
2078/079 792 339 453
2079/080 629 270 359
2080/081 575 506 69

The drop in disposals in 2076/077 and 2077/078 is largely attributable to the global spread of the
coronavirus (COVID-19) and measures such as judicial shutdowns and limited court hearings.
From 2078/079 onward disposals increased and in 2080/081 the number of disposals (506) out of
total intake (527) is the highest recorded since the Special Court’s establishment.

4.2 Data Analysis of Commission on Investigation of Abuse Of Authority Nepal (CIAA)3

4.2.1 Complaints and Actions Taken

3
Annual Report 2081/82, Commission for the Investigation of Abuse of Authority (CIAA), at
19–21.
 Table 1: Complaints & Actions

Fiscal Amount
Complaints Resolve Cases
Year Pending Accused Involved
Received d Filed
(B.S.) (NPR Billion)

2077/078 22,000 16,500 5,500 48 320 3.2

2078/079 24,500 18,700 6,800 52 380 4.1

2079/080 26,800 20,200 7,600 58 420 4.8

2080/081 28,300 22,600 8,472 62 460 5.4

2081/082 28,554 29,703 10,362 64 490 5.67

 Carryover from FY 2080/81: 8,472 complaints.

 Total Complaints Handled in FY 2081/82: 37,026.

 Disposition of Complaints:
o Resolved through mediation: 6,715

o Forwarded to relevant agencies: 4,345

o Under investigation: 17,130

o Dismissed: 586

4.2.2 Status of Complaints by Office

The distribution of complaints across regional offices is as follows:

Office Total Complaints Resolved (%) Pending (%)

Central Office 19,561 16,307 (83.36%) 3,254 (16.64%)

Eastern Regional 2,336 1,935 (82.83%) 401 (17.17%)

Mid-Western Regional 3,970 2,909 (73.27%) 1,061 (26.73%)

Western Regional 2,765 1,945 (70.34%) 820 (29.66%)

Far-Western Regional 1,360 1,179 (86.69%) 181 (13.31%)

Others 7,034 5,428 (77.17%) 1,606 (22.83%)

29,703
Total 37,026 7,323 (19.78%)
(80.22%)

4.2.3 Progress in Anti-Corruption Measures

[Link] Prosecution of Corruption Cases

During the fourth quarter of FY 2081/82, 64 cases were filed in special courts, involving 490
accused and implicating NPR 5.67 billion in financial damages.

Breakdown of Cases Filed:

Case Type Cases Filed Accused

Illegal Financial Gains 21 157

Public Property Damage 20 277

 Case Type Cases Filed Accused

Bribery (Ghus) 8 22

Fake Certificates 6 6

Unauthorized Transactions 6 13

Other Offenses 3 15

Total 64 490

Accused by Position:

Private
Position Government Others Total
Sector

Special Class/Equivalent 2 7 - 9

Joint Secretary/Equivalent 9 11 - 20

Under Secretary/Equivalent 15 31 1 47

Section Officer/Equivalent 51 20 29 100

Non-Gazetted Officers 48 3 24 75

Other Employees 16 7 - 23

Total 142 79 54 275

4.2.2. Prosecution, Settlements, and Institutional Actions

During the fourth quarter of FY 2081/82, the Commission for the Investigation of Abuse of
Authority (CIAA) filed 64 corruption cases in special courts, involving 490 accused and
recovering NPR 5.67 billion in illicit gains.

Quarterly Breakdown of Legal Actions

Jesth
Action Type Baisakh Ashad Total
a

Cases Filed in Special Court 19 28 17 64

Complaints Resolved 42 24 15 81

Settlements Reached 251 46 8 305

Financial Recoveries (NPR) 395M 54M 12M 461M

Insights:

 Recovery rate: NPR 461 million in Q4 2081/82.

 Top offenders: Mid-level bureaucrats (Section Officers: 51 accused in 2081/82).

4.3 Analysis of Department of Anti Money Laundering Investigation, Nepal

4.3.1 Money Laundering Investigations of last Three Year data (2078/079–2080/081)

Fiscal Year Complaint Cases Claimed Conviction
Accused
(B.S.) s Prosecuted Amount (NPR) Rate

2078/079 136 3 14 26.46M 75%

2079/080 742 11 37 623.44M 78%

2080/081 789 12 39 1.744B 81%

4.3.1 Investigation Progress

The Department implemented preventive, deterrent, and remedial measures, focusing primarily
on investigative actions for asset purification.4
During the reporting year:

 789 complaints/information reports were received.

 39 accused individuals were charged in 12 separate cases.5
 Total claimed amount: Rs.1.7443 Billion (Rs.1 Arab 74 Crore 43 Lakh 1 Thousand
423).

(a) Investigation Progress Report

Description Progress (FY 2080/81)

Total Complaints Received 789
From Financial Intelligence Unit (FIU) 34
From Department’s Internal Sources 12
From Individuals 732
From Other Agencies 11
Preliminary Inquiries Initiated 596
Cases Referred to Other Agencies 40
Cases Filed (Charge Sheets) 30
Cases Prosecuted 12
Number of Accused 39
4
Anti-Money Laundering and Prevention of Organized Crime Act, 2064 (2008) (Nepal), Nepal Gazette.
5
Id
 Description Progress (FY 2080/81)
Cases Decided by Special Court 34
Cases Dismissed 26
Total Claimed Amount Rs.1.74 Billion

(b) Key Indicators: Comparative Data (Last 3 Fiscal Years)

Indicator Unit 2078/79 2079/80 2080/81

Preliminary Inquiries Initiated No. 112 247 596
Cases Prosecuted No. 3 11 12
Accused Persons No. 14 37 39
Total Claimed Amount Rs. Rs.26.4564M Rs.623.44M Rs.1.7443B

(c) Complaint Sources: Comparative Data (Last 3 Fiscal Years)

Internal FIU Other Foreign

Fiscal Year Individuals Total
Sources Reports Agencies Requests
2078/79 64 0 20 52 0 136
2079/80 710 2 10 19 1 742
2080/81 732 12 34 11 0 789

(d) Preliminary Inquiries: Comparative Data (Last 3 Fiscal Years)

Internal Other Foreign

Fiscal Year Individuals FIU Reports Total
Sources Agencies Requests
2078/79 40 0 20 52 0 112
2079/80 215 2 10 19 1 247
2080/81 539 12 34 11 0 596

(e) Investigation Status (Cumulative up to FY 2080/81)

Description Unit Result

Cases Prosecuted No. 101
Total Claimed Amount Rs. Rs.14.2727B
Cases Decided No. 97
Cases Dismissed No. 79
Cases Resolved (Convictions/Acquittals) No. 18
Case Success Rate % 81%
Cases Decided by Supreme Court No. 15
- Cleared by Supreme Court No. 3
 Description Unit Result
- Convictions by Supreme Court No. 12
Supreme Court Success Rate % 80%

4.3.2 Cases Filed by the Department6

Case Filing Accused Claimed Related

S.N. Final Decision
Date (B.S.) Name(s) Amount (Rs.) Crime

Man Decision: 2066/11/10

Revenue
1 2066/03/20 Bahadur 300,000 Confiscated: Rs.300,000
Evasion Fine: Rs.300,000
Ghale

Wu Lixiang Decision: 2068/02/19

Banking
2 2067/11/23 (Chinese 67,450,000 Confiscated: Rs.67,450,000
Fraud Fine: Rs.67,450,000
National)

Decision: 2069/01/21
Shanti Confiscated: Rs.2,700,000
3 2068/02/16 2,700,000 Narcotics Fine: Rs.2,700,000
Tamang
Imprisonment: 1 Year

Silang Decision: 2069/08/08

Luobu Confiscated: Rs.2,200,000
4 2068/10/06 2,200,000 Homicide Fine: Rs.2,200,000
(Chinese
National) Imprisonment: 1 Year

Decision: 2069/08/19
Liuxuelin
Counterfei Confiscated: Rs.2,125,000
5 2068/10/26 (Chinese 4,350,000 Fine: Rs.2,000,000
ting
National) Imprisonment: 1 Year

Niranjan Decision: 2070/09/19

Confiscated: Property
Hojai
(Rs.39,305,528.80)
6 2068/11/05 Binod 86,347,474.01 Homicide Fine: Rs.15,980,406.01
Neupane Imprisonment: 4 Years
Rai (Niranjan), 2 Years (Binod)

Dhan Verdict: Acquitted by

7 2068/12/19 Bahadur 2,050,020 Unknown Supreme Court
Paswan (2073/09/03)

6
Annex-6, Annual Progress Report for Fiscal Year 2080/81 (2023/24), Dep’t of Money Laundering Investigation
(Nepal) (2024).
 Case Filing Accused Claimed Related
S.N. Final Decision
Date (B.S.) Name(s) Amount (Rs.) Crime

Umesh
Kumar Confiscated: Rs.400,000
Sharma (Umesh)
Aaditya 400,000 Rs.780,000 (Aaditya)
Banking
8 2069/02/19 Kumar 780,000 Rs.840,000 (Mukesh)
Fraud Verdict: Acquitted (others);
Sharma 14,431,700
Mukesh Mukesh: 2 Years
Kumar imprisonment
Sharma

Jiwan
Kumar
Shah
Megha Decision: 2070/03/30
Kumari 40,378,314.17 Banking Imprisonment: 1 Year
9 2069/01/25 (Jiwan)
Kalawar ... Fraud
Anita Verdict: Acquitted (others)
Kumari
Kantidevi
Kalawar

Cross-
Futnima Decision: 2069/05/13
10 2069/02/31 4,900,000 border Verdict: Acquitted
Sherpa
Crime

Kedar
Prasad
Gautam
346,941,816 Banking
Krishna
95 2080/12/05 341,729,103 Fraud & Status: Under Investigation
Hari Thapa
60,800,000 Corruption
Sarba
Bahadur
Thulung

Naresh
Agrawal
Deepak Decision: 2081/03/31
Foreign Fine: Rs.10,364,860
Sah 12,717,098
96 2080/12/06 Currency (Naresh)
Thakuri 11,203,844.43 Rs.22,407,688.86 (Deepak)
Violation
Divas Kaki Imprisonment: 2-2.6 Years
Manmohan
Sah
 Case Filing Accused Claimed Related
S.N. Final Decision
Date (B.S.) Name(s) Amount (Rs.) Crime

Manish
Bhandari
Status: Verdict pending
97 2081/01/02 Digvijay 4,007,208 Narcotics (फैसला आउन वाँकी)
Singh
Tamang

Chandidee Human Status: Under Investigation

98 2081/02/30 84,762,883.30 (र्वचाराधीन)
p Rai Trafficking

Rameshwa
r Paudel
Minadevi
Shah
Vijay Foreign
Status: Under Investigation
99 2081/03/11 Kumar 8,379,659 each Currency (र्वचाराधीन)
Yadav Violation
Mokhtar
Ahmad
Santosh
Yadav

Samir Banking Status: Under Investigation

100 2081/03/18 180,372,818 (र्वचाराधीन)
Bikathoki Crime

Siddhabah
Revenue Status: Under Investigation
101 2081/03/21 adur 70,605,324 (र्वचाराधीन)
Evasion
Mahajan

4.4 Analysis of Special Attorney Office of Nepal

[Link]
The Special Government Attorney Office was established in Kathmandu Valley by decision No.
2070.07.25 (25 October 2013)7 of the Government of Nepal (Council of Ministers), under the
Office of the Attorney General. This office conducts prosecutions, pleadings, and defenses for
cases where the Government of Nepal is the plaintiff, heard by:

 Special Court, Kathmandu

7
Nepal Gazette, Part 3, Vol. 63, No. 42, 2070.07.25 (2013).
 Revenue Tribunal, Kathmandu
 Foreign Employment Tribunal, Kathmandu
 Administrative Court
 Commercial Bench of High Court, Patan.8
The office is led by a Deputy Attorney General, with other government attorneys and staff. 9

4.4.2 Case Arguments and Defense (Table No. 1)

Curr
Main
Previo ent Acqu Wit
taine Disp
Crime us FY FY itted/ hdr Othe Disp Pendi
Total d osal
Type Pendi Regi Dism aw r osed ng
Char %
ng stere issed n
ges
d

Annex 1 129 27 156 131 1 0 132 24 99.24

Annex 2 524 431 955 377 297 60 734 221 51.36

Under Trial 758 545 1,303 746 251 121 1,118 185 66.73

Total 1,411 1,003 2,414 1,254 549 181 1,984 430 63.21

Note: 63.21% cases resulted in upheld charges; 27.67% in acquittals.10

4.4.3 Prosecution-Related Work

Under Article 158(7) of the Constitution, 11 the Attorney General delegated authority to prosecute
cases under specified Acts. In FY 2080/081, prosecution was initiated against 564 defendants in
245 cases.12

4.4.4 Prosecution Outcomes of last Five years Analysis (Table No. 1)

8
Organized Crime Control Act, 2063, § 28 (Nepal 2007).
9
Government Attorneys Regulations, 2077, r. 4(2) (Nepal 2020).
10
Supra note 10, at 71 (Table 45).
11
Constitution of Nepal art. 158(7) (2015).
12
Supra note 10, at 71.
Fiscal Year Total Conviction Disposal
Acquittals Withdrawn
(B.S.) Cases s Rate

2078/079 1,800 1,100 500 200 60%

2079/080 2,000 1,250 550 200 62%

2080/081 2,414 1,254 549 181 63%

2081/082* 2,600* 1,400* 600* 200* 65%*

2082/083* 2,800* 1,550* 650* 220* 67%*

4.4.5 Transactional Work (Table No. 2)

Non-
Invest Accu Prose App Ch Sectio War
Prose
igatio sed cutio Reconc eal arg n 73 Plea rant
cutio To
n State n iliation Deci e Appli ding s
n tal
Order ment Decisi Orders sion Fili cation s Issue
Decisi
s s ons s ngs s d
ons

9,
6,71 1,84
25 110 245 43 58 62 20 0 11
2 8
6