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Nepalese police arrested alleged high-level power broker and businessman Deepak Bhatta in Kathmandu on Thursday on money laundering charges.
Bhatta, who chairs Infinity Holdings, has long faced scrutiny for allegedly leveraging political and bureaucratic connections to secure lucrative government contracts, operating with perceived impunity under multiple administrations.
Additional Inspector General Manoj Kumar K.C., head of the police’s Central Investigation Bureau, confirmed the arrest in Kathmandu’s Naxal Gairidhara neighborhood.
“We have arrested him and sent him to the Department of Money Laundering Investigation for further investigations,” K.C. told OCCRP.
Following the transfer, the Kathmandu District Court granted the department a 10-day remand on Thursday to detain and investigate Bhatta.
The arrest follows an escalating probe by investigators into Bhatta's finances. Earlier this week, immigration authorities barred him from leaving the country after records showed frequent travel to the U.S., Thailand and the United Arab Emirates.
Authorities are examining multiple suspicious transactions linked to Bhatta. In June 2021, Nepal's central bank flagged a 450 million Nepalese rupee ($3.02 million) transfer from Jagadamba Steel to Bhatta’s personal account—a transaction omitted from the steel company’s audit report. Investigators allege Bhatta then funneled the money through Infinity Holdings into Himalayan Reinsurance Co. Ltd., where he is a promoter.
Additionally, the DMLI asked the Nepal Insurance Authority last month to investigate Bhatta's 3.81 billion rupees ($25.6 million) purchase of secondary market shares in Nepal Reinsurance Co. Ltd. and other entities. Investigators allege Bhatta misappropriated these funds for personal stock purchases through a local brokerage firm.
Police said the ongoing investigation targets Bhatta, his affiliated companies and his personal assets.
The crackdown aligns with a renewed anti-graft push in the country. The Office of the Prime Minister and Council of Ministers recently directed all government agencies to aggressively tackle financial crimes.
“The recently formed government has placed high priority on ending policy-level, institutional and procedural corruption in public bodies,” the prime minister's directive read. “It is necessary for all agencies to take the required initiative to end corruption.”
