Deuba Couple writes to money laundering agency and Special Court, Seeks time to return and cooperate with investigation

KATHMANDU: Former Prime Minister Sher Bahadur Deuba and his wife, former Foreign Minister Dr. Arzu Rana Deuba, have written to Nepal’s Department of Money Laundering Investigation (DMLI) and the Special Court, stating that they are willing to cooperate with an ongoing investigation into their assets and requesting that no arrest warrant be issued against them while they remain abroad for medical treatment.

In a jointly signed letter, the couple said they would return to Nepal within two months and appear before investigators to assist with the inquiry. They urged authorities not to create a narrative suggesting that they had fled the country or were refusing to participate in the investigation.

“We are ready to cooperate with the investigation in good faith. We request that no situation be created that would portray us as having absconded from the country or avoided appearing before investigators, leading to the issuance of arrest warrants and difficulties in returning to Nepal,” the letter states.

Letter Sent to Both Investigation Agency and Court

The letter was addressed to the Director General of the Department of Money Laundering Investigation, with a copy also sent to the Special Court, the judicial body responsible for hearing money laundering and related financial crime cases.

Under Nepal’s legal framework, the DMLI must seek approval from the Special Court if it intends to pursue prosecution or obtain arrest authorization in cases under its jurisdiction. By copying the court, the Deuba couple appears to have informed both the investigating agency and the potential adjudicating authority of their intention to cooperate.

Although the letter bears the date Asar 28 (July 12), sources familiar with the matter indicated that it was received via email and that the date may have been mistakenly written one month ahead.

Questions Raised Over the Investigation

In the letter, the Deuba couple questioned why the money laundering agency was conducting an investigation into their assets, arguing that they have regularly submitted asset disclosures throughout their public careers.

They contend that if questions arise regarding the assets of public office holders, such matters typically fall within the jurisdiction of the Commission for the Investigation of Abuse of Authority, Nepal’s constitutional anti-corruption body.

According to the letter, complaints regarding their assets were filed with both the CIAA and the Department of Money Laundering Investigation while they were abroad for medical treatment. The couple claims that while no further action was taken by the CIAA, the money laundering agency proceeded with its own investigation, including preparing a formal inventory report at their residence in Budhanilkantha.

Dispute Over Allegations of Cash and Valuables

The Deuba family also challenged the basis of the ongoing inquiry, citing findings from an investigation team led by Deputy Director General Nirmal Dhakal following the Gen-Z movement and the attack on their residence.

According to the letter, the investigative team concluded that allegations suggesting large amounts of cash and valuable jewelry had been destroyed or concealed at the residence were not supported by evidence.

The couple argues that once the department’s own investigation failed to substantiate such claims, there was little justification for escalating the matter toward arrest and detention.

They stated that they remain fully prepared to appear before investigators and establish their innocence through lawful procedures.

Background: Supreme Court Intervention

The controversy stems from an earlier move by the Department of Money Laundering Investigation to obtain arrest authorization against the Deuba couple from the Kathmandu District Court.

The couple subsequently challenged the arrest warrants before the Supreme Court of Nepal.

In a significant ruling, the Supreme Court suspended the arrest process, noting that a legal amendment published in the Nepal Gazette on April 30, 2026 (Baisakh 18, 2083 BS), had shifted jurisdiction over money laundering cases from district courts to the Special Court.

The court questioned how arrest authorization could continue to rely on the district court after the jurisdiction had already been transferred. As a result, it halted enforcement of the arrest warrants.

However, the Supreme Court did not prohibit the Department of Money Laundering Investigation from seeking fresh authorization from the Special Court under the revised legal framework.

‘We Will Return Within Two Months’

The Deuba couple emphasized that they are currently undergoing medical treatment abroad and therefore require additional time before returning to Nepal.

In their letter, they pledged to notify the department upon their return and appear before investigators to assist with the inquiry.

“To establish our innocence, we are fully prepared to appear before the department and cooperate with the investigation. As we are currently undergoing treatment, we respectfully request time and assure you that we will return to Nepal within two months and inform the department accordingly,” the letter states.

Political and Legal Significance

The case has attracted significant political attention because it involves a former prime minister and one of Nepal’s most prominent political families. The investigation is also emerging as a major test of Nepal’s anti-money laundering framework and the jurisdictional changes introduced through recent legal amendments.

With the Supreme Court having suspended the earlier arrest warrants but leaving open the possibility of fresh action through the Special Court, the next phase of the investigation is likely to depend on whether authorities seek new arrest authorization or wait for the Deuba couple’s promised return to Nepal.

The outcome of the case could have broader implications for how high-profile asset investigations, anti-corruption inquiries, and money laundering cases are handled under Nepal’s evolving legal system.