Money laundering department probes former chief justice Rana’s assets, revives 13-year-old case against associate

Nepal’s money laundering department is examining assets allegedly linked to former chief justice Cholendra Shumsher Rana and associates after Basnet’s arrest revived a 2013 red sandalwood case.

PUBLISHED13-OCT-2026 10:44 AM

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Money laundering department probes former chief justice Rana’s assets, revives 13-year-old case against associate

Kathmandu, October 13, 2026 — The Department of Money Laundering Investigation has intensified efforts to trace assets allegedly linked to former chief justice Cholendra Shumsher Rana and his associates, while reviving a 13-year-old forest offense case against businessman Nabin Raj Basnet.

The investigation follows information received by the department that Rana was allegedly trying to influence the case against businessman Deepak Bhatta, who is in custody pending trial on money laundering charges.

Inam Sapkota, identified as a close associate of Rana, has been arrested. Although a court authorized his detention over an alleged offense under the Nepal Rastra Bank Act, investigators are also examining him for possible money laundering.

Before Sapkota’s arrest, the department conducted simultaneous raids on October 7 at the homes of Rana and three other individuals. Basnet was among those targeted. The Central Investigation Bureau (CIB) arrested him on Friday at the request of the Kathmandu Division Forest Office.

Basnet had been a fugitive defendant in a case involving 226 kilograms of red sandalwood seized in Guhyeshwari, Kathmandu, in March or April 2013.

According to the case details, Basnet contacted Bhim Kumar Sunar of Kakurthakur, Sindhuli, 13 years ago, saying he needed sand transported. Basnet, who also operated Pepsi Cola Town Planning, instructed Sunar to transport sand from Kalinchowk Suppliers to Jorpati.

Sunar agreed and took Nir Bahadur Singh of Sarlahi as his assistant. In his statement, Sunar said Basnet rode a motorcycle ahead of the tipper truck carrying the sand. When the truck reached Guhyeshwari, plainclothes police stopped and searched it, discovering red sandalwood concealed beneath the sand.

During questioning, Sunar and Singh identified Basnet as the owner of the consignment. Basnet was not arrested at the time, while the driver and his assistant were detained and taken to the Kathmandu District Police Office.

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The department wrote to the Kathmandu Division Forest Office on September 22, providing details of the old case and requesting action. The letter also stated that Basnet had rented the vehicle used to transport the sand. On September 29, the forest office asked the CIB to arrest him. The bureau detained him on Friday night.

The court has yet to record Basnet’s statement in the red sandalwood case. As courts are closed for the Dashain holiday, proceedings are expected to resume after they reopen.

A department source said investigators would examine Basnet’s assets and identify people who allegedly supported his activities. Investigators are expected to review businesses and property held in his name and in the names of his relatives.

The department suspects that Rana and leaders of the CPN-UML may have invested in assets under Basnet’s name. A source associated with the investigation alleged that pressure from UML leaders had helped Basnet avoid action in the earlier forest case. These claims have not been independently established.

According to a department officer, investigators wanted to arrest Basnet and discovered the old forest case while looking for grounds to detain him. Authorities are now seeking to use the case to examine his assets, political connections and financial dealings.