Businessman Deepak Bhatt Arrested on Charges of Violating Insurance Act

The Central Investigation Bureau (CIB) of Nepal Police arrested businessman Deepak Bhatt on Thursday at the request of the Department of Money Laundering Investigation. Bhatt faces allegations of irregularities involving the purchase of shares worth approximately NPR 381 crore, violating Section 140 of the Insurance Act 2079. The District Court has permitted his detention for 10 days for further investigation, while Bhatt maintains his innocence and claims to be a victim.

During his presentation at the Kathmandu District Court on Thursday, the court authorized a 10-day custody period to facilitate investigation. Bhatt is among the major shareholders of Himalayan Reinsurance Company and is under investigation for alleged irregularities in the acquisition of shares of Nepal Reinsurance Company. The department has also initiated correspondence with the Nepal Securities Board and Insurance Board for further scrutiny.

It has been reported that Bhatt misappropriated NPR 273.33 crore from Himalayan Reinsurance, NPR 22 crore from affiliated companies, and additional amounts from Nepal Life Insurance and other companies. In court, Bhatt denied any wrongdoing, asserting that individuals close to him used his TMS account to commit fraud. He further stated that it is unjust for only him to face investigation while the real perpetrators remain unapprehended.