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Nepal Congress leader Deepak Khadka arrested in money laundering case Amid Gen Z protest fallout

Police on Sunday arrested Nepali Congress leader and former Minister for Energy, Water Resources, and Irrigation Deepak Khadka, in a money laundering case, a senior police officer said. 

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March 29, 2026
WORLD

Kathmandu: Police on Sunday arrested Nepali Congress leader and former Minister for Energy, Water Resources, and Irrigation Deepak Khadka, in a money laundering case, a senior police officer said. 

Third arrest linked to fallout of September Gen Z movement

A day after former Prime Minister KP Sharma Oli and former Home Minister Ramesh Lekhak were 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.

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

“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,” said SSP Shrestha. 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 if they were generated through artificial intelligence.

The Department of Money Laundering Investigation had earlier sent a letter to Police Headquarters requesting an inquiry into Khadka.

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 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.

Meanwhile, police on Sunday presented former Home Minister Lekhak before the District Court, Kathmandu, seeking an extension of his detention for further investigation into his role in suppressing the Gen Z movement.

A total of 77 people lost their lives, and properties worth over NPR 84 billion were damaged during the uprising on September 8 and 9 last year, according to a government report. An inquiry commission, led by former Special Court chairperson Gauri Bahadur Karki, has recommended that Oli, Lekhak, and former Police Chief Chandra Kuber Khapung be charged under Sections 181 and 182 of the National Penal Code for criminal negligence, which could lead to up to 10 years’ imprisonment if convicted.

Police also said there are plans to present Oli before the court virtually, as he has been admitted to a hospital in Kathmandu for health reasons following his arrest.

(IANS)

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