KATHMANDU: The Commission for Investigation of Abuse of Authority (CIAA) has initiated legal proceedings against Mohan Bahadur Basnet, the mayor of Nagarjun municipality in the Kathmandu district, on charges of corruption and money laundering. Basnet is accused of abusing his position to facilitate financial gains for private enterprises, resulting in significant losses to the state treasury.
According to National News Agency Nepal, the charges assert that Basnet, in collaboration with business entities such as Padma Colony Private Limited, Padma Merchant Company, and Jagatguru Kripalu Foundation Nepal, engaged in corrupt practices that benefitted these organizations at the expense of public funds. Specifically, the charge sheet highlights Basnet’s involvement in a land transaction where property valued at Rs 477 million was sold for Rs 232 million to Padma Colony, significantly below market value.
Further allegations detail that Rs 21.5 million was deposited into bank accounts owned by Basnet and his wife, Urmila Basnet. The funds are purportedly linked to illicit payments, including Rs 68 million from Raju Prasad Kandel, the proprietor of Padma Colony, for the undervalued land deal, and an additional Rs 2.4 million allegedly provided for a wedding celebration.
The anti-corruption commission has demanded the recovery of Rs 92 million from Basnet, his spouse, and Kandel. Additionally, a separate lawsuit on money laundering has been filed, seeking the recovery of Rs 132 million from the involved parties. These legal actions underscore the CIAA’s commitment to addressing corruption and financial misconduct within local government structures.