Department of Money Laundering Investigation transfers former Minister Deepak Khadka's case to CIAA

Kathmandu. The Department of Money Laundering Investigation has transferred the investigation file of former Minister Deepak Khadka, who was arrested on charges of money laundering, to the Commission for the Investigation of Abuse of Authority (CIAA).

The Department sent the file, along with preliminary evidence gathered against Khadka, to the commission's office on Monday.

Following the transfer of the file, Home Minister Sudan Kirati visited the CIAA office in Tangal to meet with Chief Commissioner Prem Rai.

A senior CIAA official told Rato Pati that they discussed advancing the investigation into Deepak Khadka. Khadka was arrested by a team from the Central Investigation Bureau (CIB) on Chait 15. Following his arrest, the Department of Money Laundering Investigation had been conducting an investigation under judicial remand.

According to the provisions amended in Chait 2080 to the Money Laundering Prevention Act 2064, prosecution in money laundering cases requires an underlying predicate offense. Since a corruption complaint against Khadka was already filed with the CIAA, the Department transferred the file, stating that the investigation into the acquisition of illegal assets must also be conducted based on the predicate offense.

The CIAA has the legal authority to investigate corruption and the acquisition of disproportionate assets by public officials under the Prevention of Corruption Act.

A senior official from the Department stated, 'Since the CIAA is investigating the predicate offense, we deemed it appropriate to send the file there. Once the CIAA takes the corruption and illegal asset case to court, if grounds for money laundering are established, the Department can conduct further investigation and prosecution.'

Department officials note that since the police can also investigate money laundering, the CIB may conduct further investigations and prosecute in the District Court after the CIAA completes its probe.

The Department stepped back from Khadka's investigation after the 2080 amendment to the Act curtailed its jurisdiction to directly investigate money laundering cases. For complaints filed before Chait 30, 2080, the Department had the authority to investigate money laundering directly. For subsequent cases, the Money Laundering Prevention Act stipulates that investigation and prosecution for money laundering can only proceed based on facts and evidence after the agency investigating the primary offense has initiated proceedings.

Preparations are now underway to keep Khadka, who is currently in the custody of the Department of Money Laundering Investigation, under CIAA custody by obtaining a remand.

Khadka served as the Minister of Energy, Water Resources and Irrigation in the government led by KP Sharma Oli during the Gen-Z movement on Bhadau 23 and 24. He was also the Minister of State for Water Supply and Sanitation in the government led by Pushpa Kamal Dahal 'Prachanda'. Khadka has been a member of parliament twice.