Suspended Nagarjun Mayor Basnet Sentenced to 11 Years, Fined Over Rs 310 Million

Suspended Mayor of Nagarjun Municipality, Mohan Bahadur Basnet, has been sentenced to nearly 11 years in prison along with a fine exceeding Rs 310 million, after being convicted in a high-profile case of money laundering and corruption.

The Special Court, presided over by Chief Judge Tek Narayan Kunwar and Judge Ram Bahadur Thapa, handed down the sentence on Asar 10, 2081 BS (June 24, 2024). Basnet had previously been found guilty on Asar 6 (June 20, 2024), following a case filed by the Commission for the Investigation of Abuse of Authority (CIAA).

Basnet, who was elected Mayor in both 2017 and 2022 local elections from the Nepali Congress, was found guilty of accepting bribes and laundering illicit funds during his tenure.

Detailed Sentence Breakdown:

• 8 years imprisonment and a fine of Rs 23 million for accepting bribes from a businessman.
• Additional 3 months in prison for misuse of public office.
• 3 years imprisonment for money laundering.
• A fine of Rs 262.5 million—twice the determined illicit gains of Rs 131.2 million under the money laundering charge.
• An additional Rs 26.2 million as fine related to various counts of illegal gains.
• Ordered to deposit Rs 10.5 million into the Crime Victim Relief Fund.

Businessman Involved and Bribery Details:

The court also ordered Raju Prasad Kandel, chairman of Padma Colony Pvt. Ltd. and Padma Merchant Company, to deposit Rs 922,460 each into the Relief Fund as a penalty for offering bribes to Basnet.

Basnet was found to have received Rs 92.2 million in bribes from Kandel, which he then laundered, according to court documents.

The CIAA filed the case on Poush 14, 2081 BS (December 29, 2024), implicating Basnet, his wife Urmila Basnet, and businessman Kandel in the corruption and money laundering scheme. While both Basnet and Kandel were convicted, Urmila Basnet was acquitted.

Serious Allegations and Abuse of Power:

The charges state that Mayor Basnet abused his official position to exempt taxes for Jagadguru Kripalu Pratishthan Nepal, chaired by Kandel, in exchange for bribes. He also allegedly facilitated foreign aid worth Rs 7.48 billion to the organization and aided in land deals masked as temple construction projects.

Investigations revealed that Kandel’s companies were allowed to acquire land at undervalued prices—Rs 189.4 million for plots worth over Rs 477.5 million, with the difference misappropriated by Basnet and Kandel.

The court found that Basnet laundered these illicit gains through multiple bank accounts under his and his wife’s name. He also engaged in illegal land plotting and sales, claiming the land was for temple construction, and reportedly collected Rs 3.72 million from various individuals into his personal accounts.