Money laundering investigation intensifies as Bhatt, Agrawal offices raided, Devices seized

KATHMANDU: Nepal’s Department of Money Laundering Investigation has conducted an extensive raid on the offices and residences of prominent businessmen Deepak Bhatt and Sulabh Agrawal, seizing critical documents, electronic devices, and surveillance records as part of an ongoing financial crime investigation.

The coordinated operation was launched on Baisakh 1, 2083 BS (Nepali New Year), targeting multiple locations linked to the two businessmen, including Bhatt’s office and residence in Sanepa and Agrawal’s business premises. Authorities also raided the offices of Himalayan Re, expanding the scope of the probe into broader corporate linkages.

Multi-Location Operation and Seizures

According to officials familiar with the operation, enforcement teams carried out simultaneous searches across key sites, sealing Bhatt’s office located in Kiran Bhawan, Sanepa, and taking control of sensitive materials.

“Special operations were conducted at the offices of Bhatt and Agrawal,” a source said. “Bhatt’s Sanepa office has been sealed, and documents, computers, laptops, and other materials have been seized. Similar action was taken at Agrawal’s office, where teams worked throughout the day to collect evidence.”

At Himalayan Re, investigators confiscated not only financial documents but also CCTV footage, indicating an effort to reconstruct transaction trails and internal decision-making processes.

Custody and Ongoing Investigation

Both Bhatt and Agrawal are currently under investigation in custody on charges related to money laundering. The department is examining the origin, movement, and transformation of financial assets allegedly linked to illicit activities.

Authorities have indicated that the investigation is being conducted under the Asset (Money Laundering) Prevention Act, 2008 (2064 BS), which criminalizes the concealment, conversion, and transfer of proceeds derived from illegal sources.

Allegations Against Deepak Bhatt

Investigators allege that Bhatt accumulated assets through activities in violation of provisions under the Insurance Act, 2022 (2079 BS), particularly Section 140, and subsequently invested those proceeds in Nepal’s capital markets and other sectors.

According to court-authorized investigation details, Bhatt is suspected of engaging in acts prohibited under multiple clauses of Section 3(1) of the anti-money laundering law. These include disguising the illicit origin of funds, converting assets into different forms, and integrating them into the formal financial system.

Authorities believe that investments made in the stock market and other financial instruments may have been used to obscure the original source of funds.

Probe into Sulabh Agrawal

Sulabh Agrawal is also under parallel investigation on similar charges of money laundering. While specific financial transactions linked to his case have not been publicly disclosed, officials confirmed that evidence seized during the raid is being analyzed to establish potential violations.

Agrawal is not new to legal scrutiny. In 2019 (2076 BS), he was arrested on allegations of attempting to sell thermal guns at inflated prices during a public health emergency. He was later released on bail, but the incident had drawn significant public attention at the time.

Link to Broader Corporate Networks

The investigation appears to intersect with larger business networks. Authorities confirmed that earlier, Shankar Group Chairman Shankarlal Agrawal had also been detained for questioning in connection with related financial matters. He has since been released after completing his statement process.

Shankar Group is one of Nepal’s major industrial conglomerates, with investments spanning steel, cement, hydropower, and consumer goods sectors, including Jagdamba Steel.

While officials have not explicitly confirmed direct institutional liability, the inclusion of multiple business entities in the investigation suggests a broader scrutiny of corporate financial practices and interlinked transactions.

Legal and Economic Implications

The ongoing probe underscores increasing regulatory scrutiny in Nepal’s financial and corporate sectors, particularly amid rising concerns over illicit financial flows, regulatory arbitrage, and misuse of investment channels.

Experts note that enforcement actions under anti-money laundering frameworks have intensified in recent years as Nepal seeks to strengthen financial transparency, improve compliance with international standards, and avoid potential grey-listing risks in global financial monitoring systems.

The seizure of digital devices and surveillance records indicates that investigators are likely building a forensic case based on transaction histories, communication trails, and internal corporate records.

Authorities are expected to conduct detailed forensic analysis of the seized materials, which could lead to formal charges, asset freezes, or further arrests depending on the findings.

The Department of Money Laundering Investigation has not yet issued an official public statement detailing the full scope of the operation, but officials संकेत that the investigation remains active and may expand further.

As the case develops, it is likely to have broader implications for Nepal’s business environment, regulatory enforcement, and investor confidence, particularly in sectors linked to financial markets and large-scale corporate investments.