22nd May, 2026 - The Department of Money Laundering Investigation (DMLI) has recommended prosecuting 29 individuals, including controversial businessmen Deepak Bhatta and Sulabh Agrawal, on charges of money laundering involving an alleged embezzlement of nearly ₹20 billion.
The DMLI has filed a recommendation with the District Government Attorney's Office, Kathmandu, seeking to recover the massive sum. The investigation accuses the group of illegally diverting funds from five listed companies amounting to over ₹3.73 billion and using the proceeds for stock market manipulation and other unlawful activities.
High-Profile Accused Named
The list of recommended defendants includes:
- Deepak Bhatta: Chairman of Infinity Holdings
- Sulabh Agrawal: Chairman of Jagdamba Holdings, along with his wife Subhi Agrawal
- Shankarlal Agrawa: Chairman of Shankar Group (Sulabh’s father)
- Shahil Agrawal: Chairman of Jagdamba Group
- Shekhar Golchha: former President of FNCCI
- Rajbahadur Shah: Managing Director of Jawalakhel Group
- Upasana Poudel: CEO of Himalayan Re-Insurance
- Rohit Gupta: Vice President of Ramesh Corp
Rishiraj Mor and Sandeep Chachan, among others.
While Bhatta and Sulabh Agrawal remain in custody, Shankarlal Agrawal was released on a surety bail. Shekhar Golchha was also arrested initially but freed following a Supreme Court order. The remaining accused are currently at large.
Charges and Legal Provisions
The DMLI has accused the group of violating the Prevention of Money Laundering Act, 2064 (Section 3(1) a, b, c) by concealing, disguising, and converting the source of illegally obtained assets. They are also charged under Section 140 of the Insurance Act, 2079.
The upcoming lawsuit is expected to demand:
- Prison sentences ranging from 2 to 10 years
- Fines equivalent to the amount of embezzled property (NPR 20 billion)
- Confiscation of assets with unverified sources of income
Modus Operandi: Embezzlement & Stock Manipulation
The investigation revealed that the group illegally diverted NPR 3,73,85,24,226 from public funds held in five listed companies, including:
- Himalayan Re-Insurance
- Himalayan Securities Banker
- HLI Large Cap Fund
- Nepal Micro Insurance
It is alleged that Deepak Bhatta, in collusion with Sulabh Agrawal, siphoned this money to purchase a large volume of shares of Nepal Re-Insurance Company through Bhrikuti Stock Broking Company (Broker No. 55) a broker that was not legally authorized for margin trading at the time.
The scheme allegedly involved two strategic goals:
1. To gain control of Nepal Re-Insurance Company, which was preparing to issue rights shares.
2. To weaken Nepal Re-Insurance before potentially merging it with Himalayan Re-Insurance, thereby strengthening their dominance in the market.
According to DMLI sources, the broker received over ₹2.73 billion from the sale of shares belonging to Himalayan Re-Insurance but never remitted the funds. Instead, that money was used to purchase shares in Nepal Re-Insurance in Bhatta’s name.
Broker & Unauthorized Margin Trading
The Nepal Securities Board (SEBON) submitted a report to the DMLI confirming that Bhatta, along with Subhi Agrawal, Rajbahadur Shah, and Rishiraj Mor, engaged in illegal margin trading. The report states:
They conducted share transactions without paying advance amounts, failed to clear dues, and yet received shares in their accounts. This artificially inflated share prices and deceived investors and the securities market."
Deepak Bhatta, in his statement to the DMLI, claimed he was unaware of the transactions, alleging that the broker provided his login credentials to Sulabh Agrawal, who then misused them. However, since the broker lacked regulatory approval for margin trading at the time, Bhatta’s defense itself suggests illegal activity.
Current Status & Next Steps
- Himalayan Re-Insurance has already filed a separate case against Bhrikuti Stock Broking at the Kathmandu District Court to recover its funds.
- The District Government Attorney’s Office confirmed it is in the final stage of reviewing the DMLI’s investigation report. A case is expected to be filed within the next week.
- Separately, the Central Investigation Bureau (CIB) of Nepal Police is conducting an independent probe into securities market manipulation under the Securities Act, 2063.
- A senior DMLI official added, “This is just the beginning. We have launched parallel investigations into their money laundering activities in other sectors as well. Multiple cases will be filed.”
Source: Department of Money Laundering Investigation, District Government Attorney’s Office Kathmandu, NepalLawyer.com Correspondent
