Authorities in Nepal have taken a prominent business figure into custody as part of an expanding money laundering investigation. Deepak Bhatta, the chairman of Infinity Holdings, was apprehended in Kathmandu under suspicion of handling millions of dollars in illicit funds.
The arrest occurred on Thursday in the Naxal Gairidhara district, confirmed by Additional Inspector General Manoj Kumar K.C., who leads the police’s Central Investigation Bureau. The suspect was subsequently handed over to the Department of Money Laundering Investigation for deeper probing, with a local court granting a 10-day detention order for that purpose.
Bhatta has long been under scrutiny for what critics describe as using political and bureaucratic ties to win state contracts, often evading accountability across successive governments. The current crackdown comes as immigration authorities had already barred him from international travel earlier this week, citing frequent trips to the United States, Thailand, and the United Arab Emirates.
The probe focuses on several questionable financial moves. In mid-2021, Nepal’s central bank flagged a transfer of 450 million rupees, roughly $3 million, from Jagadamba Steel into Bhatta’s personal bank account—a sum not recorded in the steel company’s official reports. Investigators believe he subsequently moved the money through Infinity Holdings into Himalayan Reinsurance Co. Ltd., where he acts as a promoter.
Further, the money laundering department has requested the Nepal Insurance Authority look into Bhatta’s purchase of secondary market shares worth 3.81 billion rupees, approximately $25.6 million, in Nepal Reinsurance Co. Ltd. and other firms. Authorities allege he used improperly sourced funds for these personal stock deals through a local brokerage.
Law enforcement officials have stated that the investigation targets not only Bhatta but also his companies and personal holdings. This effort aligns with a reinvigorated anti-corruption campaign nationwide, following a directive from the Prime Minister’s Office urging all state agencies to conduct aggressive actions against financial wrongdoing.
“Ending corruption at policy, institutional, and procedural levels within public bodies is a top priority for this government,” the directive emphasized. “Every agency must take the necessary steps to achieve this goal.”