In a massive escalation against financial crime, the Central Investigation Bureau (CIB) of Nepal Police has directed the Securities Board of Nepal (SEBON) to freeze the shares and detailed investment portfolios of 56 individuals linked to the high-profile Deepak Bhatta and Sulabh Agrawal money laundering case.
This move follows a comprehensive probe by the Department of Money Laundering Investigation (DMLI), which recently recommended a multi-billion rupee lawsuit against the network for manipulating regulatory systems and embezzling massive funds from listed public companies.
Mapping out the Freezing Orders
The CIB’s strict directive blocks all equity movements, trading access, and clearing operations for the named suspects across the Nepal Stock Exchange (NEPSE) and Central Depository System and Clearing (CDSC).
Primary Directive: Freeze all demat accounts, share units, and ongoing buy/sell transaction histories.
Target Count: 56 individuals (including elite business tycoons, high-ranking corporate directors, and proxy shareholders).
Core Goal: To prevent the liquidation or laundering of illegally obtained securities assets before the formal court trial begins.
Background of the Multi-Billion Rupee Scam
Deepak Bhatta (Chairman of Infinity Holdings) and Sulabh Agrawal (Vice Chairman of the Shankar Group/Jagdamba Holdings) were arrested by law enforcement in April 2026. The DMLI has finalized its charges, seeking damages and asset forfeitures totaling nearly NPR 20 billion.
The preliminary investigation uncovered a deeply rooted financial network that manipulated multiple public bodies, including SEBON and the Nepal Insurance Authority.
1. The “Zero-Payment” Share Rigging Scheme
A specialized SEBON inquiry report revealed that Deepak Bhatta managed to acquire shares in listed companies worth NPR 3.80 billion through Bhrikuti Stock Broking Company (Broker No. 55) without making actual banking payments from his accounts.
Instead, funds were unlawfully siphoned out from five major entities—including Himalayan Reinsurance, Himalayan Securities Banker, HLI Large Cap Fund, and Nepal Micro Insurance—to buy massive volumes of shares in competing companies like the state-backed Nepal Reinsurance Company Limited.
2. Suspicious Corporate Fund Transfers
The Financial Information Unit (FIU) of Nepal Rastra Bank originally flagged the network after detecting a suspicious NPR 450 million direct transfer from Jagadamba Steel into Bhatta’s personal overdraft account. This massive sum completely bypassed the company’s official financial audits.
Regulatory and Political Fallout
For years, Bhatta operated as an influential political-business broker, allegedly manipulating public procurement contracts and security forces’ logistics criteria. Investigators state his syndicate heavily influenced the appointments of favorable leadership figures inside regulatory bodies to pass policy adjustments and ease suspicious transactions.
Following political shifts and the recent Gen-G movement in Nepal, the long-stalled investigative files were officially revived. DMLI and CIB officials raided corporate offices and seized digital equipment, luxury vehicles, and financial logs.
“The scale of this operation is unprecedented for Nepal’s secondary market,” stated a senior investigative official. “Everyone involved in this network—from proxy buyers who lent their names to the transactions to market operators who facilitated credit trading without margins—is under active criminal scrutiny.”
What Happens Next for the Market?
As SEBON implements the freeze order on the 56 individuals, compliance officers are thoroughly examining brokerage data logs to isolate all tied assets. Legal experts anticipate the Kathmandu District Government Attorney’s Office will formally register the multi-billion rupee money laundering and financial fraud case in court within days.
