Money Laundering Probe Into Deepak Bhatta Expands as Former Investment Board CEO Sushil Bhatta Arrested
Nepali authorities have widened an ongoing money laundering investigation targeting businessman Deepak Bhatta, arresting his brother and former Investment Board Nepal CEO Sushil Bhatta alongside alleged intermediary Inam Sapkota. Investigators are probing an intricate network involving high-level political figures, judicial contacts, and suspicious financial transactions linked to a Rs 26 billion case.
Kathmandu police have expanded a high-profile money laundering investigation into businessman Deepak Bhatta, arresting his brother Sushil Bhatta—a former Chief Executive Officer of Investment Board Nepal—and alleged intermediary Inam Sapkota. The arrests mark a significant escalation in the government's effort to dismantle a complex financial and political influence network.
The investigation broadened after law enforcement uncovered details linking Sapkota to former Chief Justice Cholendra SJB Rana. Phone records retrieved from Rana indicated that Sapkota attempted to mediate and sway judicial proceedings on behalf of Deepak Bhatta, who remains in custody following an arrest ordered on April 2 by Prime Minister Balendra Shah. While initially detained under the Banking Offence and Punishment Act, Sapkota now faces primary charges under the Nepal Rastra Bank Act alongside money laundering allegations.
Sushil Bhatta was taken into custody on October 17 by the Kathmandu District Police Range during the Dashain holidays. Senior Superintendent of Police Dilip Ghimire confirmed that police acted on evidence of continuous, suspicious communications between Sushil Bhatta and Sapkota. Bhatta has been remanded in custody for seven days as authorities examine whether he utilized political clout gained during his tenure under former Prime Minister KP Sharma Oli's administration to assist his brother.
Key aspects of the ongoing investigation include:
- Scale of Misappropriation: Deepak Bhatta faces charges of laundering Rs 26 billion linked to the misappropriation of funds from Himalayan Reinsurance, alongside separate cases under the Securities Act.
- Judicial and Political Reach: Authorities are scrutinizing ties to prominent leaders, including KP Sharma Oli, Sher Bahadur Deuba, Prime Minister Balendra Shah, and Home Minister Sudan Gurung.
- Institutional Collusion: Investigating whether systemic political and judicial influence was mobilized to settle multiple banking and financial offense cases.
An official from the Department of Money Laundering Investigation confirmed that the government aims to dismantle the entire patronage network supporting the Bhatta brothers.