How to File Fraud Case in Nepal

 

Key Legislation Governing Fraud in Nepal

Fraud cases in Nepal are governed by multiple legal frameworks. The National Penal Code, 2074 (Muluki Ain) Section 279 addresses general fraud, while specialized laws cover banking and electronic fraud. Victims often feel overwhelmed by the legal process. Therefore, clear guidance is provided below.

Legal Framework for Fraud Cases in Nepal

Fraud is criminalized under several statutes. Understanding these laws is essential before filing any complaint.

Table 1: Fraud Laws and Applicability

Legal Act	Section	Fraud Type	Punishment
Muluki Criminal Code 2074	279	General fraud	Up to 3 years imprisonment + NPR 30,000 fine
Banking Offence Act 2064	4-9	Banking fraud	1-5 years imprisonment + fine (varies by offense)
Electronic Transactions Act 2063	44-47	Cyber/e-fraud	Up to 5 years imprisonment + NPR 200,000 fine
Consumer Protection Act 2075	50-55	Consumer fraud	Compensation order + up to NPR 50,000 fine

 

Note: These provisions are applied based on the nature of the fraudulent activity. Multiple charges can be filed simultaneously if the fraud involves different domains.

Types of Fraud Recognized Under Nepali Law

Different categories of fraud are recognized. Each type follows a slightly different procedural path.

1. Property Fraud: False representation in land transactions, fake ownership documents
2. Financial Fraud: Banking offenses, loan fraud, unauthorized withdrawals
3. Commercial Fraud: Forged contracts, fake business agreements
4. Cyber Fraud: Online scams, phishing, identity theft
5. Consumer Fraud: Defective products, misleading advertisements
6. Insurance Fraud: False claims, manipulated documents

Where to File Fraud Complaint in Nepal

Multiple authorities accept fraud complaints. Selection depends on fraud type and jurisdiction.

Primary Filing Locations for Fraud Cases

Table 2: Complaint Jurisdiction Guide

Authority	Fraud Type Handled	Location	Contact
Local Police Station	General fraud, property fraud	Nearest station	100 emergency
Cyber Crime Bureau	Online fraud, e-fraud	Bhotahity, Kathmandu	01-5970021
Banking Fraud Unit (NRB)	Banking offenses	Nepal Rastra Bank, Kathmandu	01-4411522
District Court	Direct complaint (limited cases)	District headquarters	Varies by district
CIB Nepal Police	High-value financial fraud	Kathmandu	01-4411520

Important: For most fraud cases, the nearest police station is the starting point. Cases are transferred to specialized units after initial registration.

Step-by-Step Process: How to File Fraud Case in Nepal

Step 1: Evidence Collection and Documentation

Before approaching authorities, comprehensive evidence must be compiled. Documentary evidence forms the foundation of fraud prosecution.

Required Evidence Checklist:

• Original transaction documents
• Communication records (SMS, email, chat screenshots with timestamps)
• Bank statements and payment receipts
• Witness statements (if available)
• Audio/video recordings (legally obtained)
• Property ownership papers (for property fraud)
• Contract agreements and invoices
• Complainant's citizenship certificate

Digital Evidence Requirements:
Screenshots without metadata are often rejected. Therefore, original devices should be preserved. Email headers must be visible. Call logs should show phone numbers and timestamps.

Step 2: Drafting the Written Complaint Application

A formal written complaint must be prepared. The application should be written in Nepali or English.

Table 3: Complaint Application Components

Section	Required Information	Details
Complainant Details	Full name, citizenship number, address, contact	Must match official ID
Incident Description	Date, time, location, sequence of events	Chronological order preferred
Fraud Type	Specific legal sections violated	Refer to Table 1
Accused Information	Name, address, contact (if known)	"Unknown" is acceptable
Financial Loss	Exact amount defrauded	Attach proof
Evidence List	Inventory of attached documents	Number each item
Relief Sought	Investigation, arrest, recovery	Be specific

 

Sample Structure:

1. Introduction (who you are)
2. Background (relationship with accused, if any)
3. Incident details (what happened, when, how)
4. Discovery of fraud (when you realized)
5. Evidence summary (what proof you have)
6. Request for action (what you want police to do)

Step 3: Submitting the Fraud Complaint

Two primary submission methods are available. Both are equally valid.

Method A: Police Station Submission

• Visit nearest police station during working hours (10 AM - 5 PM)
• Request complaint registration form (FIR form)
• Submit hand-written complaint with all evidence
• Obtain acknowledgment receipt with reference number
• Note investigating officer's name and contact

Method B: Cyber Bureau Online Submission (for cyber fraud)

• Visit www.cyberbureau.gov.np
• Click "File a Complaint" section
• Fill digital form with incident details
• Upload scanned documents (PDF format, max 10MB)
• Submit and save acknowledgment number
• Expect contact within 3-5 working days

Step 4: Preliminary Investigation Phase

Police conduct initial verification within 7-15 days. This includes:

• Authenticity check of submitted documents
• Preliminary suspect identification
• Bank record verification (for financial fraud)
• Property record check (for property fraud)
• Complainant statement recording (official statement)

Critical Note: Approximately 40% of fraud complaints are rejected at this stage due to insufficient evidence. Therefore, forensic preservation of original documents is essential.

Step 5: FIR Registration and Case Number Assignment

Upon finding prima facie evidence, police register the First Information Report (FIR) under relevant sections. The FIR number serves as official case identification.

Table 4: Common FIR Sections for Fraud Cases

Fraud Type	Primary Section	Secondary Section	Case Category
General fraud	Muluki Criminal Code 279	-	Public offense
Bank fraud	Banking Offence Act 4	Muluki Criminal Code 279	Financial crime
Cyber fraud	Electronic Transactions Act 44	Muluki Criminal Code 279	Cybercrime
Property fraud	Muluki Criminal Code 279	Land Act sections	Property crime

Step 6: Detailed Investigation Process

After FIR registration, investigation is conducted by specialized units.

Investigation Timeline:

• Day 1-7: Suspect identification and location tracing
• Day 8-30: Evidence collection, bank record seizure, witness statements
• Day 31-60: Expert opinion (document authenticity, handwriting expert)
• Day 61-90: Final investigation report preparation

Investigation Powers:
Police can:

• Issue summons for accused appearance
• Request bank transaction details (suspicious transaction reports)
• Seize property and documents (with court warrant)
• Arrest suspects (with court warrant)
• Request mutual legal assistance (for cross-border fraud)

Step 7: Charge Sheet Filing

Upon investigation completion, the case is forwarded to the District Government Attorney. The attorney reviews evidence and files a charge sheet in court within 15-30 days.

Charge Sheet Contents:

• Case summary
• Accused details
• Legal sections applied
• Witness list
• Evidence inventory
• Investigation findings

Step 8: Court Trial Process

After charge sheet filing, court proceedings begin.

Table 5: Court Procedure Timeline

Stage	Duration	Activity
Initial hearing	Day 1-7	Charge reading, bail application
Evidence presentation	Day 8-45	Prosecution evidence submission
Defense evidence	Day 46-75	Accused evidence submission
Final arguments	Day 76-90	Both sides arguments
Judgment	Day 91-120	Verdict and sentencing

Note: Complex fraud cases may take 9-18 months for final judgment.

Required Documents for Fraud Complaint in Nepal

Comprehensive documentation is mandatory. Missing documents cause delays or rejection.

Table 6: Complete Document Checklist

Document	Purpose	Source	Mandatory
Citizenship certificate	Identity verification	Ward office	Yes
Passport (foreigners)	ID for non-Nepali	Immigration	Yes (for foreigners)
Complaint application	Formal request	Self-prepared	Yes
Original contracts/agreements	Proof of transaction	Parties involved	Yes (if applicable)
Bank statements	Financial proof	Bank	Yes (for financial fraud)
Property ownership papers	Ownership evidence	Land revenue office	Yes (for property fraud)
Communication records	Intent/discovery proof	Phone/email	Highly recommended
Witness statements	Supporting evidence	Witnesses	Recommended
Medical reports (if applicable)	Damage proof	Hospital	For fraud causing injury
Power of attorney (if represented)	Legal representation	Court/notary	If using lawyer

Important: All documents must be self-attested. Photocopies should be clear and legible. Originals must be available for verification.

Timeline for Fraud Case Resolution in Nepal

Understanding realistic timelines helps manage expectations. Fraud cases take considerable time due to investigation complexity.

Table 7: Typical Case Duration

Case Complexity	Investigation	Trial	Total Duration
Simple fraud (clear evidence)	30-45 days	3-6 months	4-8 months
Moderate fraud (some investigation needed)	60-90 days	6-12 months	8-15 months
Complex fraud (multiple suspects, jurisdictions)	90-180 days	12-24 months	15-30 months
Banking/corporate fraud (high-value)	180-365 days	18-36 months	2-4 years

Factors Affecting Timeline:

• Evidence quality and availability
• Suspect cooperation
• Witness availability
• Court backlog
• Need for expert opinions
• International cooperation requirements

Fraud Case Investigation Process: Detailed Breakdown

Phase 1: Initial Verification (Days 1-15)

During this phase, basic facts are verified. Police check:

• Complainant credential authenticity
• Document genuineness (preliminary check)
• Whether an offense is made out
• Jurisdiction determination

Phase 2: Evidence Collection (Days 16-45)

Intensive evidence gathering occurs:

• Bank record requisition (Suspicious Transaction Reports from Financial Intelligence Unit)
• Digital device analysis (if cyber fraud)
• Property record verification (if property fraud)
• Witness examination
• Expert consultation (handwriting, document authenticity)

Phase 3: Suspect Handling (Days 46-75)

• Summons issuance for accused appearance
• Interrogation at police station
• Arrest (if warrant obtained from court)
• Remand request for extended custody
• Statement recording

Phase 4: Report Preparation (Days 76-90)

• Investigation report drafting
• Evidence compilation
• Charge sheet preparation
• Forwarding to District Attorney

Rights of Complainants in Fraud Cases

Legal rights are protected under the Criminal Procedure Code, 2074.

Table 8: Complainant Rights

Right	Description	How to Exercise
Right to information	Status updates every 15 days	Request in writing
Right to protection	Protection from accused intimidation	Request police protection
Right to legal representation	Hire lawyer anytime	Through Nepal Bar Association
Right to compensation	Restoration of losses	File separate civil claim
Right to appeal	Challenge police inaction	File petition in District Court
Right to evidence submission	Provide additional proof	Submit to investigating officer

 

Victim Protection: In high-value fraud cases, witness protection may be provided. Requests should be made to the Superintendent of Police.

Costs and Fees for Filing Fraud Case in Nepal

Fraud case filing has minimal government fees. However, associated costs exist.

Table 9: Cost Breakdown

Item	Amount (NPR)	Paid To
Police complaint registration	Free	Nepal Police
Court registration fee	500-2,000	District Court
Document attestation	50-200 per document	Notary/Ward office
Lawyer fees (if hired)	15,000-100,000+	Law firm/lawyer
Expert opinion (if needed)	5,000-25,000	Government lab/private expert
Property valuation (if applicable)	2,000-10,000	Land revenue office

Note: Government fees are nominal. Primary costs are legal representation and expert opinions.

Fraud Case Punishment and Penalties in Nepal

Punishment depends on fraud type, amount, and severity. Sentencing guidelines are prescribed by respective laws.

Table 10: Punishment Framework

Fraud Category	Imprisonment	Fine	Additional Penalties
General fraud (Section 279)	Up to 3 years	Up to NPR 30,000	Property return to victim
Bank fraud (Banking Offence Act)	1-5 years	NPR 50,000-500,000	License cancellation (for institutions)
Cyber fraud (ETA 2063)	Up to 5 years	Up to NPR 200,000	Ban from electronic transactions
Document fraud (Section 276)	5-10 years	NPR 50,000-100,000	Additional fine equal to gain
Consumer fraud (CPA 2075)	Up to 1 year	Up to NPR 50,000	Compensation order

Aggravating Factors:

• Fraud amount exceeding NPR 1 million
• Multiple victims
• Abuse of position/trust
• Cross-border elements
• Organized crime involvement

Mitigating Factors:

• First offense
• Voluntary restitution
• Guilty plea
• Cooperation with investigation

Appeal Process for Fraud Cases in Nepal

Both parties have appeal rights. The process is governed by the Criminal Procedure Code, 2074.

First Appeal: High Court (Patan High Court)

Timeline: Within 35 days of District Court judgment
Grounds:

• Legal interpretation error
• Procedural irregularity affecting outcome
• Insufficient evidence consideration
• Excessive punishment

Process:

• Appeal petition filing through prison authority (if convicted) or directly
• Case record transmission from District Court
• Hearing notice to opposite party
• Arguments presentation
• Judgment within 6-12 months

Second Appeal: Supreme Court

Timeline: Within 30 days of High Court judgment (only on constitutional/legal questions)
Grounds:

• Fundamental rights violation
• Substantial question of law
• Precedent-setting issues

Note: Supreme Court appeal is not automatic. Leave must be granted.

Revision Petition

Within 90 days of judgment, revision can be filed in the same court for:

• Clerical errors
• Mistakes apparent on record
• Newly discovered evidence

Special Considerations for Different Fraud Types

Banking Fraud Cases

Unique Requirements:

• Bank's internal investigation report must be obtained
• Nepal Rastra Bank notification is mandatory
• Financial Intelligence Unit (FIU) report is often required
• Professional audit may be needed for complex cases

Reporting Authority: Banking Offence Unit, Nepal Rastra Bank (in addition to police)

Property Fraud Cases

Unique Requirements:

• Land ownership verification from Land Revenue Office
• Survey department certificate (for land boundary disputes)
• Mutation record examination
• Previous transaction history review

Jurisdiction: Property location determines police station jurisdiction

Online Fraud/Cyber Fraud Cases

Unique Requirements:

• Digital evidence preservation is critical
• Platform data must be requested quickly (data retention policies)
• IP address tracing is time-sensitive
• International cooperation may be needed
• ETA 2063 sections must be specifically invoked

Report Immediately: Digital evidence disappears quickly. Screenshots are insufficient; original devices/data must be preserved.

How to Choose Legal Representation for Fraud Cases in Nepal

While lawyers are not mandatory for complaint filing, representation is recommended for complex cases.

Table 11: Lawyer Selection Criteria

Factor	What to Look For	Verification Method
Specialization	Criminal law, banking law, cyber law	Nepal Bar Association profile
Experience	5+ years in fraud cases	Case history, client references
Success rate	Track record of favorable outcomes	Ask for anonymized case results
Location	Familiarity with local courts	Local Bar registration
Fees	Transparent, reasonable pricing	Written fee agreement
Availability	Prompt communication, accessibility	Initial consultation assessment

Nepal Lawyer Recommendation: For fastest service across Kathmandu, Pokhara, Biratnagar, and major cities, Nepal Lawyer provides specialized fraud case handling with proven track records.

Frequently Asked Questions (FAQs) About Fraud Cases in Nepal

Question	Answer	Legal Basis
What is the first step after discovering fraud?	Immediate evidence preservation. Take screenshots, secure documents, and contact authorities within 24-48 hours.	Criminal Procedure Code, 2074
Can fraud cases be filed online in Nepal?	Yes, for cyber fraud via cyberbureau.gov.np. General fraud complaints require physical police station visits.	Electronic Transactions Act, 2063
How long does fraud investigation take?	30-90 days for simple cases; 6+ months for complex cases involving multiple jurisdictions.	Police investigation rules
What if the fraudster is in another country?	International cooperation through INTERPOL and MLAT can be requested. Investigation may take 1-2 years.	Mutual Legal Assistance Act
Is there a time limit to file fraud complaint?	Generally, within one year of discovery for most frauds. Some banking frauds have 6-month limitation periods.	Limitation Act, 2024
Do I need to hire a lawyer immediately?	Not mandatory but recommended within the first week to ensure proper evidence collection and statement drafting.	Legal Practice Act, 2070
Can fraud cases be settled out of court?	Yes, but only before charge sheet filing. After court involvement, settlement requires court approval.	Criminal Procedure Code, 2074
What percentage of fraud cases result in conviction?	Approximately 35-40% conviction rate, depending on evidence quality and investigation thoroughness.	Supreme Court annual report
Can companies file fraud complaints?	Yes, companies can file through authorized representatives. Board resolution and authorization letter required.	Company Act, 2063
Are fraud victims entitled to compensation?	Yes, separate civil claim can be filed. Criminal courts can also order restitution.	Civil Procedure Code, 2074
What if police refuse to register FIR?	Written refusal can be appealed to District Superintendent of Police or directly to District Court via petition.	Criminal Procedure Code, 2074
Can fraud charges be dropped after settlement?	Before charge sheet filing, yes. After filing, only prosecution can withdraw with court permission.	Prosecutorial discretion rules
How to track fraud case status?	Use complaint reference number at police station or court. Online tracking available for cyber bureau cases.	Right to Information Act
What is the punishment for attempting fraud?	Attempted fraud carries half the punishment of completed fraud under Section 279.	Muluki Criminal Code, 2074
Can I file fraud case without original documents?	Yes, but success probability drops significantly. Secondary evidence rules apply.	Evidence Act, 2031

Common Mistakes to Avoid When Filing Fraud Case in Nepal

1. Delay in Reporting: Cases become weaker as evidence disappears. Report within 24-72 hours if possible.
2. Incomplete Documentation: Missing bank statements or communication records cause rejection.
3. Altered Evidence: Never edit screenshots or documents. Original evidence is crucial.
4. No Backup Copies: Always keep duplicate document sets. Police may retain originals.
5. Direct Accusation: Let police conduct investigation. Direct confrontation may alert suspect.
6. Ignoring Legal Advice: Free consultation is available. Use Legal Aid Committee if eligible.
7. Unrealistic Expectations: Fraud cases take months/years. Quick resolution is rare.
8. Using Unofficial Channels: Always go through official police/court channels. Middlemen complicate matters.

City-Specific Filing Information

Kathmandu Valley

• Cyber Bureau: Bhotahity, Kathmandu (for online fraud)
• Specialized Units: Banking Offence Unit (Babarmahal), CIB (Maharajgunj)
• District Courts: Kathmandu, Lalitpur, Bhaktapur

Pokhara (Gandaki Province)

• District Police: Kaski District Police Office
• Economic Offence Unit: Available at provincial level
• District Court: Pokhara Bench

Biratnagar (Province 1)

• Regional Police: Province 1 Police Headquarters
• District Court: Morang District Court

Major Cities

Nepal Lawyer provides services in:

• Kathmandu, Pokhara, Biratnagar, Birgunj, Nepalgunj, Butwal, Dharan, Hetauda
• Same procedure applies; local jurisdiction rules must be followed

Call to Action: Get Expert Legal Assistance

Fraud cases require immediate professional action. Nepal Lawyer offers:

• 24-hour emergency consultation for fraud victims
• Same-day complaint drafting and filing assistance
• Expert coordination with Cyber Bureau, CIB, and banking authorities
• Pan-Nepal service covering all major cities
• Proven track record with 500+ successful fraud cases

Contact Nepal Lawyer Today:

• Phone: 01-5970021 (Kathmandu)
• Email: [email protected]
• Website: www.nepallawyer.com/fraud-case-nepal
• Emergency Hotline: 9801884499 (24/7)

Free Initial Consultation Available. Legal aid assistance provided for eligible victims.

References

Primary Legal Sources:

• Muluki Criminal Code 2074
• Electronic Transactions Act 2063
• Banking Offence Act 2064

Government Authorities:

• Nepal Police Cyber Bureau
• Nepal Rastra Bank
• Office of Attorney General

International Standards:

• UN Convention Against Corruption
• INTERPOL Financial Crime Guide

Legal Research:

• Nepal Law Commission
• Supreme Court of Nepal
• Nepal Bar Association

Related Case Studies:

• Prabhu Bank fraud case analysis
• Hundi crime legal framework

Disclaimer: This legal guide is for informational purposes only. It does not constitute legal advice. Professional consultation is recommended for individual cases. Legal provisions are subject to amendment. Verify current laws before proceeding.

Confidentiality Notice: Information herein is protected under legal professional privilege where applicable. Unauthorized reproduction is prohibited.