Kathmandu’s Nagarjun Municipality Mayor Mohan Bahadur Basnet has been charged with corruption and money laundering at the Special Court. The Commission for the Investigation of Abuse of Authority (CIAA) filed the case on Sunday, accusing Basnet of receiving bribes from land trader Raju Prasad Kandel and laundering the proceeds.
The CIAA stated that the investigation revealed Mayor Basnet took bribes from Kandel during real estate transactions, leading to the case filing. The charge sheet submitted to the Special Court alleges that Basnet laundered the bribe money and invested it elsewhere. Basnet was elected mayor of Nagarjun Municipality in both the 2017 and 2022 local elections as a candidate of the Nepali Congress. Kandel, on the other hand, is the proprietor of Padma Colony Pvt. Ltd. and Padma Merchant Company Pvt. Ltd.
CIAA spokesperson Narahari Ghimire said that Basnet has been charged with embezzling NPR 92.46 million, and a punishment of 8 to 10 years in prison, along with fines, has been demanded.
Charges Against Mayor Basnet’s Wife and Kandel
The CIAA has also sought equal punishment for Basnet’s wife, Urmila, under the charge of being an accomplice in benefiting from the corruption. Similarly, businessman Kandel has been charged with facilitating and aiding the laundering of NPR 92.46 million, with prison sentences and fines requested.
In another charge, Basnet has been accused of laundering NPR 131.27 million and using his position to gain undue advantages, with demands for confiscating the illicitly obtained property and imposing additional penalties.
For Basnet’s wife, Urmila, the CIAA has sought half the punishment recommended for the mayor. Kandel has been charged with facilitating money laundering, prompting the CIAA to demand similar punishment.
Specific Allegations
According to the charge sheet, Mayor Basnet allegedly abused his position to grant tax exemptions to Jagatguru Kripalu Pratishthan Nepal and facilitated foreign assistance worth NPR 7.48 billion for the organization. It is also alleged that Basnet allowed agreements to provide land for temple construction within the municipality but later sold the land through plots, violating the agreements.
The investigation revealed that Padma Colony paid only NPR 189.4 million for land valued at NPR 477.5 million, with Basnet and Kandel managing the remaining amount through collusion. It was found that Basnet received NPR 21.57 million via bank transfers and land worth NPR 68.2 million, and used NPR 2.47 million for wedding expenses at Shankar Hotel, all linked to bribes.
Additionally, the investigation uncovered that bribe money was deposited into accounts held by Basnet and his wife and later laundered. Land procured for temple construction was sold locally. Basnet reportedly received NPR 3.72 million from various individuals through his account.
The CIAA alleges Basnet engaged in partnership dealings with Kandel and sold unlawfully acquired land through their spouses.
This is the second money laundering case filed by the CIAA. Last year, a similar case was brought against former Lumbini Development Fund Engineer Saroj Bhattarai, who was convicted by the Special Court.
