Special Court grants seven-day custody of former finance minister Paudel

Former finance minister and CPN-UML vice-chair Bishnu Prasad Paudel has been taken into custody for seven days by the Department of Money Laundering Investigation (DoMLI) amid allegations of abusing his authority. Investigators suspect Paudel played a crucial role in enabling the sale of shares valued at approximately 300 million rupees for a mere 37.5 million rupees. The investigation centers on claims of Paudel using his ministerial position to exert pressure on regulatory processes, potentially benefiting a business group linked to businessman Deepak Bhatta. Bhatta is currently in judicial custody on money laundering charges. According to DoMLI officials, Paudel's arrest followed statements from businessmen Chunna Prasad Sharma and Kamal Kishor Malpani during Bhatta's interrogation. Sharma and Malpani alleged that a 20 percent stake in Shreeram Tobacco Udyog Pvt Ltd was sold at an artificially low price after Paudel, during his tenure as finance minister, allegedly provided assurances for government approvals. This transaction involved transferring 375,000 units of shares for 37.5 million rupees between March and April 2024. Government attorneys are arguing for custodial interrogation, citing concerns about evidence tampering. Prosecutors contend that Paudel allegedly facilitated the transfer of this stake to Himalayan Assets Management Pvt Ltd, a company owned by Bhatta, at a significantly undervalued price. DoMLI alleges that Paudel helped launder 262.5 million rupees through this share transaction and received financial benefits. Investigators are also examining suspicions that Paudel may have "parked" illicit assets under proxies and are probing his alleged involvement in facilitating betel nut imports and regulatory approvals for other companies.