Vishnu Paudel Granted 7-Day Detention for Money Laundering Investigation
Image credit, Nepal Photo Library
The Special Court has authorized police to detain former Deputy Prime Minister and Deputy Chair of the CPN-UML, Vishnu Paudel, for seven days to facilitate investigation.
Paudel, who was arrested on Monday, was presented in court on Tuesday after the investigation’s deadline was not yet completed.
According to court spokesperson Parvati Hitan, although the department requested 20 days of detention for further investigation, the court granted only a seven-day extension.
During the hearing at the Special Court, Paudel’s lawyers argued that there was no risk of absconding and requested his release on bail with a family member or legal professional as guarantor.
Meanwhile, CPN-UML Chair and former Prime Minister KP Sharma Oli convened a parliamentary party meeting to discuss the arrests of leaders from the current government.
The Department of Money Laundering Investigation has cited suspicious transactions involving businessman Deepak Bhatt as the basis for Paudel’s arrest. However, the department’s Director General Nirmal Dhakal and Director Uttam Kumar Ghimire declined to disclose the specifics of the arrest due to the sensitivity of the case.
After his arrest on Monday, the 66-year-old Paudel was transported from Surkhet to Kathmandu on Tuesday afternoon.
Paudel, who lost in the recent House of Representatives election, has previously served three terms as Finance Minister, Defense Minister, and Minister of Water Resources as well as Minister for Youth and Sports.
CPN-UML’s Objection
Image credit, KP Oli Secretariat
CPN-UML Chair KP Sharma Oli and other leaders have termed the arrest of their leader as political retribution.
“He was arrested in a manner akin to an abduction, which is completely unacceptable. If there are suspicions, regulatory bodies can conduct independent investigations, and we will cooperate,” said CPN-UML Secretary Padma Aryal.
The CPN-UML claims that the department had no solid facts or evidence to justify the arrest of the party’s Deputy Chair.
“Wouldn’t it be better to investigate first before taking action?” Aryal questioned regarding Paudel’s arrest.
In a statement issued by Chair Oli, the arrest was labeled a ‘stunt’ undertaken for ‘cheap popularity.’
Under What Circumstances Can the Department Make an Arrest?
Image credit, DMLI
According to former Attorney General Khamba Bahadur Khati, Nepalese law only allows money laundering investigations if they are connected to another crime.
“Under this law, only when related offenses are established can money laundering and the origin of the funds be investigated,” Khati explained.
“Detention should not be automatic; currently, it seems like political vendetta. When there is some difficulty, the case is referred to as money laundering.”
However, department officials say that amendments to the law have broadened the scope of investigations related to money laundering.
“The amended law mandates investigation into money laundering irrespective of whether another related offense exists, whether investigations or prosecutions are underway,” said former Director General of the department, Kishorjung Karki.
“The department has the authority to summon investigation officers, record statements, conduct searches if evidence exists, and make arrests.”
“Even if no other crime is found, they can trace any discovered assets back to potential crimes and proceed with the investigation based on a legal framework.”
Before the amendment, only the Money Laundering Investigation Department was authorized to conduct such investigations. However, the 2080 B.S. amendment has granted other investigative bodies the authority to investigate in this area.
Karki added, “Legally, the department has now been empowered significantly.”
Investigations into criminal offenses such as human trafficking, corruption, and tax evasion also require probing into money laundering aspects.
According to Karki, the law precisely defines associated crimes, meaning individuals involved in those offenses also undergo money laundering investigations.
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