Chudamani Sharma, two others handed nine-year prison sentence

KATHMANDU: The Special Court has handed a nine-year prison sentence to three key officials of the Tax Settlement Commission who were found guilty of causing the state a loss of Rs 10.96 billion by waiving pending taxes.

The Special Court has sentenced former chairman of the commission Lumba Dhowj Mahat to nine years and one month in jail, while former member Umesh Dhakal and former member secretary Chudamani Sharma each received nine-year prison terms. The three have also been fined Rs 4.10 billion each.

A division bench comprising Special Court Chairman Shreekanta Poudel and Judges Yamuna Bhattarai and Shalikram Koirala found the three guilty on June 1.

The Commission for the Investigation of Abuse of Authority (CIAA) had filed charges against the trio, seeking a fine of Rs 1.33 billion and compensation equivalent to the fine. This was after concluding that the three were involved in providing tax waivers and discounts totaling approximately Rs 10 billion through the Tax Settlement Commission. Additionally, they were charged with revenue leakage and accumulating assets disproportionate to their income.