Former Inland Revenue Chief Sharma Faces Retrial in Corruption Cases at Special Court

Former Director General of the Inland Revenue Department, Chudamani Sharma, is set to face a hearing at the Special Court in two corruption cases concerning illegal accumulation of 'ill-gotten wealth' and revenue leakage. The case has been scheduled for hearing before a bench comprising Special Court judges Narayan Prasad Poudel, Umesh Koirala, and Bidur Koirala.

Sharma, along with Lumbadhwaj Mahat, former chairman of the Tax Settlement Commission, and member Umesh Dhakal, is accused of causing a revenue loss of 10 billion 2 crore 19 lakh 1 thousand 824 rupees through corruption. The Commission for the Investigation of Abuse of Authority (CIAA) filed the case, concluding that the tax exemptions granted by the Tax Settlement Commission were not done with proper intent and thus constituted corruption.

It was found that the Tax Settlement Commission, chaired by Mahat in 2071 BS, granted tax exemptions and waivers exceeding 10 billion two crore rupees in a malicious manner to some taxpayers who had reached settlement agreements. Sharma and Dhakal were members of this commission. The CIAA claimed that the revenue due to the state was not collected because agreements were made with taxpayers in a manner beneficial to the members, going beyond the mandate given to the commission.

Separately, another case was filed alleging that Sharma acquired illegal assets while serving as the Director General of the Inland Revenue Department on Magh 15, 2071 BS, in the same year. It was found that he had accumulated and spent assets worth over seven crore 93 lakh rupees from his entry into government service in 2045 BS until 2073 BS.

According to the CIAA investigation, his legitimate income should have been three crore 63 lakh rupees, but the source of over four crore 30 lakh rupees could not be traced. In this case, the CIAA filed the lawsuit against Sharma and also named his wife, Kalpana Upreti Sharma, as a defendant for the purpose of confiscation. In this case, the Special Court had previously convicted Chudamani Sharma and others of revenue leakage.

Sharma, along with Lumbadhwaj Mahat, Chairman of the Tax Settlement Commission, and member Umesh Dhakal, appealed the Special Court's verdict, claiming it was flawed, to the Supreme Court. On Ashar 25, 2082 BS, a bench of Supreme Court Justices Saranga Subedi and Tek Prasad Dhungana deemed the Special Court's decision flawed, raising questions about a fair hearing, and sent the case back to the Special Court for a rehearing.

Following this, the case is now scheduled for a rehearing at the Special Court.