Inam Sapkota Scandal Shakes Nepal's Ruling Party, Judiciary and Police
A controversy involving Inam Sapkota, held in police custody for three weeks, has rattled Nepal's ruling Rastriya Swatantra Party (RSP), the judiciary and Nepal Police, with allegations linking him to senior officials. The case has also exposed growing rifts between RSP chair Rabi Lamichhane and Prime Minister Balendra Shah over how to handle officials named in the investigation.
KATHMANDU, Oct 30 — A controversy surrounding Inam Sapkota, who has been in police custody for three weeks, has shaken Nepal's ruling Rastriya Swatantra Party (RSP), the judiciary and Nepal Police, with allegations linking him to senior officials across these institutions.
The investigation has also exposed growing differences between RSP chair Rabi Lamichhane and Prime Minister Balendra Shah over how to deal with officials whose names have surfaced in the case.
The government has maintained silence, while senior RSP leaders have stepped up consultations. Lamichhane met Shah on Wednesday and Speaker Dol Prasad Aryal on Thursday amid growing speculation over the political fallout.
Shah and his secretariat are reportedly dissatisfied with several senior officials, including former Chief Justice Cholendra Shumsher Rana, Chief Justice Manoj Kumar Sharma, Inspector General of Police Dan Bahadur Karki and Attorney General Narayandatta Kandel.
Sapkota's name emerged after the government brought former Chief Justice Rana to a police office around midnight on September 26 over allegations that he had tried to influence the case involving businessman Deepak Bhatt, who is in judicial custody on money laundering charges. Investigators reportedly found suspicious exchanges between Rana and Sapkota on Rana's mobile phone.
Police initially detained Sapkota on charges of indecent behaviour but have since expanded the investigation to possible violations of the Nepal Rastra Bank Act and money laundering.
Screenshots purportedly obtained from a forensic examination of Sapkota's mobile phone suggest that he was in contact with IGP Karki, Chief Justice Sharma and Supreme Court Justice Hari Phuyal. Other screenshots allegedly show money being collected in the names of Sharma and RSP lawmaker Bishwaraj Pokharel.
The Kathmandu District Police Range had sent Sapkota's phone to the police forensic laboratory for examination. The authenticity of the screenshots, some bearing the stamp of the Crime Investigation Department at Police Headquarters, has not been independently established.
WhatsApp conversations between Sapkota and Justice Phuyal have also surfaced, reportedly discussing a pending court case and a proposed meeting at Hotel Himalaya.
Phuyal has acknowledged meeting Sapkota. Speaking to journalists on Thursday, he said Sapkota approached him using Prime Minister Shah's name. The meeting took place amid rumours of possible impeachment proceedings against Supreme Court justices, he said. Phuyal added that he informed the prime minister's secretariat after Sapkota started discussing a court case.
Chief Justice Sharma has denied knowing Sapkota or having any connection with him. In a statement, he rejected reports of financial transactions conducted in his name before he became chief justice.
The screenshots reportedly refer to accounts belonging to Nirajan Pandey at Bank of America and Kavita Pandey at Sanima Bank for deposits in the United States and Nepal respectively. They do not specify the purpose of the transactions.
The Supreme Court has called a full court meeting for Friday following reports linking Sharma and Phuyal to Sapkota.
RSP lawmaker Pokharel has also denied knowing Sapkota, saying he had never met him or conducted any financial dealings with him.
Meanwhile, the Kathmandu District Police Range has defended its handling of the forensic examination, saying the report was supposed to remain confidential and sealed.
Rift over police leadership
The controversy has also exposed differences between Shah and Lamichhane over the possible removal of IGP Karki.
Sources at the Prime Minister's Office say relations between Karki and members of Shah's secretariat, including chief adviser Kumar Ben, have deteriorated. Reports that the government had asked Karki to resign circulated on Wednesday and Thursday.
Lamichhane is reportedly opposed to an immediate change in police leadership.

