Former Deputy Prime Minister Bishnu Poudel Arrested in Money Laundering Case Based on Businessman's Statement

Kathmandu. CPN-UML Vice Chairman and former Deputy Prime Minister Bishnu Poudel has been arrested in a money laundering case based on the statements of Rupandehi businessmen Kamalkishor Malpani and Chunnaprasad Sharma.

Based solely on the statements of Malpani and Sharma, the money laundering department issued an urgent arrest warrant for Poudel without evidence, suspecting him, and brought him to Kathmandu from Surkhet. When asked on what basis Poudel was arrested, an investigating officer replied that he was arrested for investigation based on the statements of Malpani and Sharma.

When Poudel was presented in the Special Court on Tuesday for extension of detention by the government side, Deputy Attorney General Bhimsen Kafle from the Special Public Prosecutor's Office stated in the court, 'An investigation needs to be conducted in detention regarding the purchase of 20 percent shares of Shriram Tobacco Pvt. Ltd.'

While those who testified that Poudel facilitated the share transaction were released on bail, Poudel has been taken into custody for investigation into the money laundering offense. The person who implicated Poudel in his statement is Chunni, or Chunnaprasad Poudel. He was a candidate from Rupandehi constituency number 2 from the Congress in the last election and competed against Bishnu Poudel. The two had a rivalry even before the election competition.

Similarly, another person who implicated him is Kamalkishor Malpani. Kamalkishor, who provided an 8 crore vehicle for Prime Minister Balendra Shah's election campaign in the last general election, gave a statement that Poudel's shares might be involved in suspicious activities based on suspicion. An investigating officer from the joint investigation team of the money laundering department stated that Poudel has been continuously followed for a week based on the statements of these two individuals.

Meanwhile, upon finding some suspicious matters, he was taken into custody for investigation. Since Poudel was also a former Finance Minister, there was no immediate possibility of destroying any evidence. All his activities and bank statements were under the government's control. The government could have investigated the matter of his property details without arresting him. However, the money laundering department directly issued an urgent arrest warrant and arrested Poudel.

• Money Laundering Based on Statement of Facilitation

Both individuals who gave statements have stated that Bishnu Poudel facilitated the sale of Shriram Tobacco shares at a low price to Deepak Bhatta. Focusing on this matter, lawyers argued on behalf of Poudel in the Special Court on Tuesday.

Deputy Attorney General Bhimsen Kafle told the Special Court that Poudel had to be arrested in connection with the investigation into the purchase of 20 percent shares of Shriram Tobacco Pvt. Ltd. by Himalaya Estate Management Pvt. Ltd. The Public Prosecutor's Office had requested 20 days of detention for Poudel for investigation. However, the court has currently granted permission for 7 days of detention for investigation.

When a case was filed against Deepak Bhatta on charges of money laundering, the Department of Money Laundering Investigation had mentioned Himalaya Estate Management Pvt. Ltd. The department was investigating that company, stating that it had invested in various places and its actual owner (investor) was someone else.

Initial investigation by the money laundering department has revealed that Bhatta, a company operated by Bhatta, purchased shares of Shriram Tobacco Pvt. Ltd. with a book value of 816 for Rs 1 at Poudel's behest. An official from the department said, 'It appears that shares with a minimum price of Rs 816 per share were purchased at a negligible price.'

Investigating officials state that Bhatta was brought in as a business partner in Shriram Tobacoto as part of Poudel's plan to gain profit. Directors of Shriram Tobacco Pvt. Ltd. had previously testified to the department that they made Bhatta a partner in the company under Poudel's pressure.

Bhatta, who was arrested earlier, has given a different statement regarding Shriram Tobacco's shares. Bhatta told the investigating officers of the money laundering department that 'the purchase of Shriram Tobacco Pvt. Ltd. shares was a purely commercial investment by Infinity Holdings Pvt. Ltd. The company has invested the amount as agreed. The company has paid dividends according to its income, profit, and dividend strategy. My actions are not motivated by money laundering.'

The government could have investigated Bishnu Poudel's bank statements, shares, etc., with a single click, as he has served as Finance Minister five times. Poudel was under government security. The Department of Money Laundering Investigation's intention was to issue an arrest warrant on the grounds of suspicion that Poudel might not appear when summoned and would not cooperate with the investigation. However, Poudel had been traveling from east to west according to the party's schedule for a week. These issues were raised in the Special Court on Tuesday by former Attorney General and Senior Advocate Ramesh Badal.

He said, 'He is not in a position to flee. Why should a former Finance Minister be arrested based solely on suspicion that he will not cooperate with the investigation? The state has resorted to autocracy. How can someone be arrested in the name of money laundering based on the statement of someone disliked?'

Similarly, Senior Advocate Kedar Koirala argued that an urgent arrest warrant cannot be issued based solely on the statements of two individuals. Koirala stated that the state has committed injustice against Poudel without investigation and evidence.

'He is under state security. As a former minister, all his records are safe with the state,' he said, 'Moreover, he is not in a position to destroy evidence. Is it permissible to infringe upon an individual's personal rights?'

• Was an Urgent Arrest Warrant Necessary?

Section 9(6) of the Muluki Criminal Procedure Code, 2074, gives the police extraordinary power to arrest anyone without a court order, but under two conditions: only if there is a concrete basis to believe the accused is likely to flee or destroy evidence.

In regular (normal) circumstances, the police must obtain permission from the court before making an arrest. According to legal experts, this provision, which came into effect on August 1, 2075 (Bikram Sambat), is to prevent the police from making arbitrary arrests and is a protection given to citizens. It is for exceptional circumstances, not as a rule.

Legal experts raised this issue during the arguments in the Special Court on Tuesday. Senior Advocate Tikaram Bhattarai questioned in court whether it was necessary to issue an urgent arrest warrant based on mere suspicion in the name of money laundering investigation, when the state should be investigating meticulously.

The money laundering department claims that an urgent arrest warrant was issued on the grounds of suspicion that Poudel might destroy evidence. Although documents were recovered from his residence in Bhainsepati before Poudel's arrest, the department stated that no further evidence was found.

The investigation department has not disclosed whether the individuals who implicated Poudel are government witnesses or individuals under investigation radar.