CIAA files graft case against Nagarjun Mayor Basnet, two others

KATHMANDU: A corruption and money laundering case has been filed against Mohan Bahadur Basnet, the mayor of Nagarjun Municipality of Kathmandu.

The Commission for the Investigation of Abuse of Authority (CIAA) filed the charge sheet against Basnet at the Special Court in Kathmandu on Sunday.

Basnet has been accused of illegally receiving land and money from Padma Merchant Company Pvt Ltd and its Director/Chairperson Raju Prasad Kandel, and subsequently laundering the proceeds through land sales.

CIAA has claimed in the charge sheet that the mayor allegedly helped the Jagadguru Kripalu Foundation to obtain foreign aid approval worth Rs 7.48 billion from individuals and organizations in exchange for bribes. Mayor Basnet has also been accused of signing correspondence that should have been handled by the chief administrative officer to enhance the foundation’s reputation and help Kandel and his companies acquire land.

According to the charge sheet, Basnet arranged advance payments of Rs 3.72 million to landowners, claiming the land was for temple construction by the Kripalu Foundation.

The CIAA has claimed that Padma Colony Pvt Ltd paid landowners Rs 180.94 million and Rs 51.28 billion taxes for land with a market value of Rs 477.5 million, allowing Kandel and his company to acquire the land at about Rs 245.27 million below market value.

The anti-graft body’s investigation found that Mayor Basnet received a total of Rs 922.24 billion from Kandel his companies, including Rs 68.2 million through the Shanker Hotel.

Mayor Basnet has been accused of laundering Rs 131.27 million by constructing a house on Urmila’s land and making various payments to hide the illegal source of the assets.

The CIAA has filed corruption charges against Mayor Basnet, his wife Urmila and Padma Colony director Kandel, seeking to recover Rs 92.24 million each. Additionally, they face money laundering charges for Rs 121.27 million.