Corruption Charges Rock Nepal Bank: Former Chairman Adhikari Faces Multiple Bribery Cases

KATHMANDU: The Commission for the Investigation of Abuse of Authority (CIAA) has filed three corruption cases against Dr. Chandra Bahadur Adhikari, former chairman of Nepal Bank Limited, and several associates, accusing them of accepting bribes to facilitate loan approvals.

The cases, lodged at the Special Court, involve a total claimed loss (bigo) of NPR 74 million across three separate incidents, with additional charges of illicit wealth accumulation targeting a former Kathmandu Metropolitan City engineer.

Case 1: Bhusal Hospitality Loan Bribery

The CIAA alleges that Dr. Adhikari accepted NPR 19 million in bribes to expedite a NPR 1.772 billion loan for Bhusal Hospitality’s project in Siddharthanagar-1, Belahiya, Rupandehi. Investigations revealed that Adhikari held multiple meetings and communicated via social media with Bhusal Hospitality’s chairman, Balkrishna Bhusal, and his son, Ankit Bhusal.

The bribe was allegedly facilitated through Khus Nasib Ansari, alias Lucky, with payments of NPR 7 million on September 18, 2024, and NPR 12 million via cheques. The CIAA has named Adhikari, Ansari, Balkrishna Bhusal, Ankit Bhusal, and Amrit Bhusal as defendants, demanding NPR 19 million in penalties for each.

Case 2: Akala Devi Traders Loan Extortion

In a second case, Dr. Adhikari is accused of demanding NPR 50 million from the operator of Akala Devi Traders in Tanahun’s Abukhaireni to facilitate a loan. The CIAA has filed charges against Adhikari, Narayan Prasad Baral, Dan Bahadur Karki, Sundar Bahadur Baniya, Santosh Subedi, and Khus Nasib Ansari, seeking NPR 50 million in damages from each defendant. The agency alleges that Adhikari exploited his position to extort funds, undermining the integrity of the loan approval process.

Case 3: Himal Tarai Construction Bribery

The third case involves a NPR 5 million bribe allegedly taken by Adhikari to approve a loan for Himal Tarai Construction Pvt. Ltd., based in Kathmandu Metropolitan City-32. The CIAA has charged Adhikari and Ramesh Acharya, demanding NPR 5 million in penalties. The agency claims the bribe was part of a pattern of corrupt practices in loan facilitation at Nepal Bank.

Illicit Wealth Case Against Engineer

Separately, the CIAA filed charges against former Kathmandu Metropolitan City engineer Ram Babu Mahato Koeri for amassing illicit wealth. Between April 1989 and March 2022, Koeri’s legitimate income totaled NPR 337.79 million, but he spent or invested NPR 796.76 million, leaving NPR 458.97 million unaccounted for. The CIAA alleges Koeri funneled illicit funds into land purchases, shares, home construction, and bank deposits under his wife, Mala Kumari Mahato’s name. Both face charges with penalties matching the unaccounted amount.

Broader Implications

CIAA spokesperson Rajendra Kumar Paudel emphasized that the cases highlight systemic corruption in public institutions. Nepal, ranked 110th on Transparency International’s 2024 Corruption Perceptions Index, continues to face challenges in curbing graft.

The Special Court’s proceedings are expected to draw scrutiny, with potential ramifications for governance reforms in Nepal’s banking and public sectors. The cases underscore the need for stricter oversight and transparency in loan processes and public office conduct.