Supreme Court Rules Shekhar Golcha’s Arrest Illegal Under Law

The Supreme Court has declared the arrest of businessman Shekhar Golcha unlawful, invalidating two arrest warrants issued by the Kathmandu District Court. The Supreme Court clarified that Golcha can only be detained if he fails to furnish bail or surety, directing the investigating officers to demand bail first. Golcha was arrested by police on April 23, 2026 (10 Baisakh 2083 BS) under allegations of fraudulent activities pertaining to the Securities Act, 2006 (2063 BS).

The court emphasized that when the law provides for bail or surety, arrest warrants should not be issued contrary to those provisions. It explicitly stated that Golcha should be held in custody only “if he fails to submit bail or surety.” Legal experts representing Golcha had argued that without a risk of absconding, there is no legal basis for arresting the accused.

The Supreme Court revoked the arrest warrants issued against businessman Golcha, including previous orders and one issued on Monday. It stated, “The orders dated 11 and 21 Baisakh 2083 (April 24 and May 4, 2026) are annulled since the investigating officer obtained detention permissions without first demanding bail or surety.” Earlier, the District Court had extended the period for the arrest warrant.

The Central Investigation Bureau (CIB) apprehended former Nepal Chamber of Commerce and Industry president Shekhar Golcha on April 23, 2026 (10 Baisakh 2083). He was accused of violating securities laws during the purchase of shares of Himalaya Reinsurance. The CIB charged Golcha with conducting fraudulent transactions, manipulating share prices, and adversely affecting the securities market.