KATHMANDU, DECEMBER 30
The Abuse of Authority Investigation Commission (CIAA) has filed cases against the mayor of Nagarjun Municipality in Kathmandu District, Mohan Bahadur Basnet, on charges of corruption and money laundering.
The CIAA on Sunday filed a complaint before the Special Court in Kathmandu against Mohan Bahadur Basnet, his wife Urmila Basnet, and Raju Prasad Kandel, owner of Padma Colony. The charges include corruption, fraud and abuse of power. The CIAA has demanded a recovery of NPR 131 million and initiated legal proceedings to hold the suspect accountable.
The allegations include manipulating legal documents to fraudulently transfer and register land and assets, resulting in significant financial benefits for the organizations involved. Reportedly, foreign aid amounting to Rs 748 million was approved under questionable circumstances for the Jagatguru Kripalu Foundation Nepal, bypassing proper regulations. The foundation allegedly benefited from tax exemptions and received financial support from the municipality under various topics, made possible through improper authorization using forged documents.
Moreover, he has been accused of supplying land to the Padma Colony Priovate Limited at a price significantly lower than its actual market value, causing losses to the government. The charge sheet stated that land worth Rs 477 million was allegedly sold to Padma Colony for just Rs 232 million, with the capital gain being misappropriated by the accused parties. The difference of Rs 245 million was allegedly embezzled by Mayor Basnet and others.
The charge sheet further revealed that illegal income totaling Rs 92.246 million was obtained through bribes and corrupt practices. These funds were laundered and used to pay off debts, personal expenses and transactions with third parties. Raju Prasad Kandel allegedly provided Rs 21.5 million, land worth Rs 68 million, and Rs 2.4 million for a wedding party as bribes to Mayor Basnet through a bank account, the charge sheet said.