The Tamesis
April 1, 2026
kathmandu – The government’s money laundering probe against three former prime ministers Sher Bahadur Deuba, KP Sharma Oli and Pushpa Kamal Dahal and former ministers Arzu Rana and Deepak Khadka and their families has entered an intensified phase even as members of the Deuba family are still abroad.
The Department of Money Laundering Investigation (DMLI) is conducting the investigation through the Central Investigation Bureau (CIB) of the Nepal Police. Former minister Khadka was arrested on Sunday and the Kathmandu District Court has granted detention for seven days for investigation.
Separately, Oli and former home minister Ramesh Lekhak are also being investigated for “crimes against life” in connection with the suppression of Gen Z-led protests on September 8 and 9. The Kathmandu District Court has remanded them in custody for five days. A money laundering investigation against Oli is ongoing in parallel with the charges, while Dahal is also under investigation.
Among them, the family members of former Prime Minister Deuba are currently abroad. Deuba, his wife Arzu Rana Deuba and son Jaiveer Singh Deuba were reportedly traveling to Hong Kong via Singapore.
According to Deuba’s personal secretary and nephew Bhanu Deuba, the couple is undergoing treatment in Hong Kong. “The former prime minister will undergo follow-up treatment this Thursday, while the former foreign minister is undergoing treatment after knee surgery on the recommendation of doctors,” he said, adding that their return would depend on medical advice.
Since Deuba is abroad, questions have been raised about how the investigation will proceed. CIB chief inspector general Manoj KC said the process would continue in accordance with the law regardless of where the suspect is.
“If an arrest is necessary and the accused cannot be located, we use diplomatic channels and Interpol mechanisms,” KC said, declining to comment on specific individuals but confirming that investigations were ongoing.
The investigation stems from evidence, including fragments of burned banknotes recovered from residences in Deuba, Dahal and Khadka following riots in September. Although Oli’s residence in Balkot was also burnt down, no burnt cash was reportedly found there.
Based on these findings and complaints filed, authorities launched a preliminary investigation into possible money laundering activities and have since entered into a detailed investigation. While Khadka and Oli are detained in a separate case, the Deuba family remains abroad.
During the protests, Deuba’s residence in Budhanilkantha was vandalized and set on fire, with reports that important documents, including his passport, were destroyed. The couple was attacked by demonstrators and later rescued by the army before being treated in hospital. They were subsequently issued new ordinary passports on September 19.
Records show that Deuba traveled to Singapore for treatment on October 27 and returned on November 14. Arzoo later traveled to New Delhi on January 5 due to personal reasons. In late February, ahead of scheduled elections, Deuba again traveled to Singapore for medical treatment, and Arzoo joined him from India.
The couple’s trip coincided with political developments within the Nepali Congress, where internal disputes culminated in a leadership change following a special congress led by secretary-general Gagan Thapa. Duuba’s faction was “marginalized” under the new leadership.
Authorities have also expanded their investigation to include relatives. According to reports, Deuba’s son Javir, nephew Prakash Bahadur Deuba and Arzoo’s brother Bhushan Rana are all abroad. Immigration records show Jaiveer traveled to Thailand frequently and had not returned since early September. His current location is believed to be Hong Kong, but official records have not confirmed his route.
Prakash Bahadur Deuba, member of the Sudur Pashihim Provincial Assembly, is believed to have traveled overland to India and then to the United States. He has not attended the provincial parliament since July 2025 and his salary and benefits have been suspended since February due to his prolonged absence.
Bhushan Rana left the country ahead of the September protests. On September 28, the DMLI raided his residence in Jawalakhel, Lalitpur and seized documents and equipment and conducted similar searches at other properties related to the Deuba family.
Rup Narayan Bhattarai, former director general of DMLI, said money laundering investigations are complex and depend on how illicit funds are handled to identify underlying crimes and trace them. If suspects are abroad, investigators can ask them to return, issue a public notice or seek an Interpol Red Notice.
However, he noted that repatriation depends on the cooperation of the suspect’s country and the effectiveness of diplomatic contacts.
Krishna Prasad Paudel, a former official in the Congress central office, said the couple’s return would depend on their health. “Once treatment is completed, they will return. They travel abroad purely for health reasons,” he said.
The investigation comes amid a broader government push to examine the assets of former senior officials. Under the 100-point governance reform plan launched by Prime Minister Balendra Shah’s government, authorities have pledged to conduct a review of the wealth of political leaders and officials who have been in power since 1991.
The DMLI’s preliminary investigation, which began six months ago, has now expanded to include a number of former prime ministers, ministers and their family members in one of the widest anti-money laundering probes in recent years.
