In a historic first for Nepal, a former Prime Minister has been formally charged in a corruption case.
Madhav Kumar Nepal, who led the country from 2009-2011, has been recently granted bail of NPR 3.5 million by a Special Court in connection with the Patanjali land scam.
Court Grants Bail After Hearing
The bail order came after the court concluded Nepal’s statement and detention hearing in a corruption case filed by Nepal’s anti-corruption watchdog—the Commission for the Investigation of Abuse of Authority (CIAA). The three-member bench comprising judges Tej Narayan Singh Raya, Ram Bahadur Thapa, and Bidur Koirala issued the decision, allowing his release on bail.
Senior Advocate Sushil Pant led the CIAA’s prosecution team, joined by government attorneys Mohan Sagar Basyal, Bhagawati Devi Gautam, Umakanta Poudel, and Gyan Prasad Bhusal. Pant argued that the Cabinet’s decision to allow certain land transactions under ceiling exemptions was not a legitimate policy decision and therefore constituted corruption.
“Not A Policy Decision” – Prosecutors Argue
Responding to the court’s key questions—whether CIAA has authority to prosecute a Cabinet decision and whether the decision led to loss of government property—Pant claimed the Cabinet action was not protected as policy and had tangible financial implications.
“The land in question should have been compulsorily nationalised, and allowing its private sale resulted in financial loss to the government,” Pant stated. He also argued that Nepal should be held in custody throughout the trial due to the seriousness of the charges.
Defence Denounces Charges As Politically Motivated
Senior Advocate Shambhu Thapa, defending Nepal, challenged the legal basis of the charges. He questioned CIAA’s right to bring in independent lawyers, citing procedural irregularities. Thapa referenced a 2003 Supreme Court ruling where a similar land exemption decision was upheld, arguing that the present charges were both politically driven and legally unsound.
Other defence lawyers, including Khamma Bahadur Khati, Raman Shrestha, and Gobinda Bandi, echoed this stance, claiming that the decision was policy-based and fell outside CIAA’s jurisdiction.
Backdrop
The case stems from land transactions approved by then-Prime Minister Nepal’s Cabinet on February 1, 2010. The government had granted exemptions to Patanjali Yogpeeth for purchasing land exceeding ownership limits for projects like yoga centres and Ayurvedic institutions.
The Cabinet allowed the purchase of land in multiple districts, including 815 ropani in Banepa, Kavre. Patanjali’s Nepal chief, Shaligram Singh, subsequently acquired over 593 ropani across Banepa. However, within a month of this approval, Patanjali sought to sell the land.
Citing direct instructions from PM Nepal, the Cabinet approved the sale of the land on March 19, 2010—just three days after the proposal. However, on March 30, Land Reform Department Director General Keshar Bahadur Baniya called the decision illegal. He was later removed and replaced by Joint Secretary Jit Bahadur Thapa, who promptly approved the sale.
On June 25, 2010, Patanjali sold over 353 ropani of land in Banepa to Kasthamandap Business Homes Pvt. Ltd. for NPR 42.25 million. Later, Patanjali reportedly purchased 104 ropani in Dhulikhel for just NPR 10.75 million, raising concerns over financial irregularities and manipulation of land values.
CIAA Seeks NPR 186 Million In Damages
The CIAA has demanded NPR 186 million in damages from former Prime Minister Nepal, alleging loss to the state through misuse of land ownership exemptions. The case continues to unfold and marks a turning point in Nepal’s fight against high-level corruption.
Read More: Supreme Court, Delhi High Court, States High Court, International
