Supreme Court Order Protecting Sher Bahadur Deuba Couple from Arrest Could Harm Nepal’s International Reputation

The Supreme Court’s order preventing the arrest of Prime Minister Sher Bahadur Deuba and his wife Arju Rana Deuba has raised concerns among some experts that it may send a negative message internationally. The order came after the Department of Money Laundering Investigation (DMLI) reportedly requested Interpol’s assistance to arrest the couple, who are under investigation.

Earlier, the Kathmandu District Court had issued an arrest warrant for the Deuba couple on Chaitra 24 (mid-April) following a request from the department. However, on Baishakh 18 (early May), the Supreme Court, citing a restrictive interpretation of the amended Anti-Money Laundering Act 2064 published in the Nepal Gazette, annulled the district court’s decision on procedural grounds, stating a lack of jurisdiction.

The Supreme Court bench, led by Justices Mahesh Sharma Paudel and Nityananda Pandey, heard a writ petition filed by former Prime Minister Deuba against the district court’s arrest warrant and on Sunday issued an interim order barring the arrest. The court ruled that the jurisdiction to issue such an arrest warrant lies with the Special Court, not the District Court, thereby invalidating the warrant.

Former Justice Balram KC noted that since the DMLI’s request for an arrest warrant to the District Court predated the ordinance amending the law, this should have been mentioned in the ruling. He also expressed concern that this episode could negatively affect Nepal’s image on the international stage.