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Former Nepal Minister Deepak Khadka arrested in money laundering case

Updated on: 29 March,2026 05:22 PM IST  |  Kathmandu
mid-day online correspondent |

Nepali Congress leader and former minister Deepak Khadka was arrested in Kathmandu in a money laundering case linked to last year’s Gen Z movement unrest. He is the third leader from the Oli-era cabinet to be taken into custody amid ongoing investigations

Former Nepal Minister Deepak Khadka arrested in money laundering case

Former Nepal Minister Deepak Khadka arrested in money laundering case on March 29. (Pic/X)

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A day after arresting former Nepal PM KP Sharma Oli, the police on Sunday arrested Nepali Congress leader Deepak Khadka. Khadka has been arrested in a money laundering case, a senior police officer said. 

Congress leader Deepak Khadka was a former minister for energy, water resources, and irrigation in the Nepalese government. 


Earlier, former Home Minister Ramesh Lekhak was also arrested in homicide-related cases linked to the suppression of the Gen Z movement in September last year.  Khadka is the third person from the Oli-led government’s cabinet to be arrested.



Khadka was arrested from his apartment in Kathmandu

Senior Superintendent of Police (SSP) Shiva Kumar Shrestha, spokesperson for the Central Investigation Bureau (CIB) of Nepal Police, while speaking to the media on Sunday, said that Khadka was arrested early Sunday morning from his apartment in the Maharajgunj area of Kathmandu.

SSP Shreshta added, “He was taken into custody for investigation after a large amount of cash was discovered when his house was set on fire during the Gen Z movement in September last year,” as per IANS.

Bundles of cash thrown into the air

As per the reports, protesters were seen throwing bundles of cash into the air in widely circulated videos and images of the uprising.

Images and videos had also surfaced showing burnt fragments of banknotes at the residences of former Prime Minister Sher Bahadur Deuba. Images and videos seen in the residences of both politicians were later confirmed true through forensic laboratory tests amid questions about whether they were generated through artificial intelligence, as reported by IANS.

The Department of Money Laundering Investigation had earlier sent a letter to police headquarters requesting an inquiry into Khadka, reported IANS. 

Khadka, who is engaged in multiple businesses, including hydropower projects and hotels, had invited controversy during his tenure as energy minister as he openly clashed with former managing director of Nepal Electricity Authority Kul Man Ghising, which eventually led to Ghising’s removal from the post.

Khadka accused of receiving financial benefits

Khadka was also embroiled in controversy regarding the issuance of licenses and awarding of contracts for hydropower projects. He was accused of receiving financial benefits in exchange for facilitating licenses and contracts, with alleged dealings taking place within the minister’s quarters and ministry premises. He also faced allegations of misappropriating land belonging to Nepal Scouts in Kathmandu.

(With inputs from IANS)

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