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A corruption case has been filed against former Prime Minister and CPN (Unified Socialist) Chairperson Madhav Kumar Nepal in connection with the controversial land deal involving Patanjali Yogpeeth. The Commission for the Investigation of Abuse of Authority (CIAA) on Thursday filed the case at the Special Court against Nepal and several other individuals implicated in the alleged misappropriation of land.

With this, his parliamentary position has been automatically suspended. For the first time in Nepal’s history, a corruption case has been filed against a former prime minister. Notably, this is the first time a corruption case has been pursued over a Cabinet decision.

Nepal has been implicated along with 93 others. The case against Nepal demands a fine and punishment, with a claim for damages amounting to Rs 185.85m. For the other defendants, the claimed damage amounts vary.

The charges stem from a Cabinet decision made during Madhav Kumar Nepal’s tenure as Prime Minister, which granted Patanjali Yogpeeth a special permission to purchase 815 ropani of land in Bancha village of Kavrepalanchok district. Patanjali, a prominent Indian organization known for promoting Ayurvedic medicine, had registered a subsidiary in Nepal in 2007 with plans to build a hospital, herbal farm and educational facilities.

Under Nepal’s land ceiling laws, private companies are generally barred from owning such large tracts of land. However, the Cabinet, led by Nepal at the time, granted Patanjali an exemption on the condition that the land would be used exclusively for medicinal and educational purposes. Investigations revealed that Patanjali began selling parts of the acquired land soon after the purchase—some reportedly within months—violating the Land Act of 1964, which explicitly prohibits the sale of land obtained under such special exemptions.

The Cabinet decision had also specified that any funds from the sale of such land must be reinvested into acquiring other land for the same purpose, a condition Patanjali allegedly ignored. CIAA’s case accuses the defendants of abusing authority, violating existing land laws and causing financial loss to the state by facilitating and failing to prevent the illegal transfer and sale of land. 

Meanwhile, Nepal has said that he did nothing wrong in the Patanjali land case. He said that if there were any irregularities, they might have been committed by government employees. “I never even imagined that something like that could happen in an institution like Patanjali,” he said. “If there were any irregularities or mismanagement in the land acquisition process, it must have been done by staff. I had no involvement.” He said he made the decision to provide land to Patanjali with the intention of promoting public health in Nepal.

“I can’t speak much without fully understanding how and where loopholes were created, or whether anyone deliberately left gaps. But I did nothing wrong on my part—it wasn’t even in my mind,” he added. Nepal said he is not afraid just because a case has been filed, as he has never engaged in wrongdoing. “To be afraid, one must have done something wrong. I haven’t done anything inappropriate, nor do I support any inappropriate activities,” he said.

Nepal also accused Prime Minister KP Oli of being against him from the very beginning. “To speak plainly, KP Oli has been targeting me from the start. His intention is to end my political career,” he said. “He has tried multiple times in the past. He is someone who acts out of a sense of revenge.”

While the case was filed, he was in his home district Rautahat and he arrived in Kathmandu later in the evening. He has said that he will consult with legal experts and then publicly share a more detailed response.

The government has made it mandatory for both buyers and sellers to provide bank statements and complete Know Your Customer (KYC) forms before property deeds can be registered. According to the Directive on the Prevention of Money Laundering and Financing of Terrorist Activities, 2025, issued by the Department of Land Management and Records (DoLMR) under the  Ministry of Land Management, Cooperatives, and Poverty Alleviation, all real estate transactions must include bank statements verifying that funds have been transferred from the buyer’s account to the seller’s account. 

The move is aimed at strengthening anti-money laundering measures and removing Nepal from the Financial Action Task Force (FATF) gray list. The FATF Plenary held in February placed Nepal on its ‘gray list’ due to concerns about the country’s anti-money laundering (AML) and counter-terrorism financing (CFT) measures, particularly in high-risk sectors like real estate and cooperatives. The finance ministry is implementing plans to remove Nepal from the gray list.

Likewise, all land and property transactions exceeding Rs 30m in a single day must now be reported to the Financial Information Unit (FIU) of the Nepal Rastra Bank (NRB). Land revenue offices will also have to report suspicious transactions to the FIU. The directive was issued as per Section 7 (2) of the Anti-Money Laundering Act, 2008. As per the Act, the DoLMA is the regulating agency for the real estate sector. 

The DoLMA has issued a circular to all land revenue and land reform offices to enforce these measures immediately. As per the directive, any land and housing transactions between Rs 1m to Rs 5m  must be conducted through banking or digital payment systems, while those exceeding Rs 5m must use electronic payments or ‘good for payment’ checks issued directly in the seller’s name.

Additionally, for offices equipped to collect revenue through banks, registration fees and charges for transactions above Rs 1m must be paid from the buyer’s account, while capital gains tax must be deposited from the seller’s account into designated government revenue accounts. The ministry believes these measures will curb money laundering, ensure accurate transaction records, prevent tax evasion, reduce corruption in land revenue offices and promote transparency in Nepal’s economic system. 

In the first nine months of fiscal year 2024/25, Nepal saw a total of 380,175 land and housing transactions. The government mobilized Rs 33.2bn in revenue from these transactions.

We observe World Environment Day every year on June 5, reaffirming our commitment to protect and preserve the natural environment. Yet, despite our pledges, these efforts often fall short, as environmental protection initiatives struggle to withstand the growing challenges of pollution. 

The natural environment of Kathmandu has become so polluted that the issue of pollution in the capital city has been a topic of discussion for decades. The Supreme Court in the landmark case of Advocate Bhojraj Aire and Others v Office of the Prime Minister and the Council of Ministers and Others (2004) observed that the environment of the Kathmandu Valley is becoming increasingly polluted day by day, a fact established through various studies and research. This pollution has had a negative impact on the right to live in a clean and healthy environment, held the apex court. The judicial decision addressing the problem of Kathmandu’s pollution was delivered nearly 21 years ago, yet we continue to debate the same concerns. Years have passed, but the core issue remains unchanged. Kathmandu is one of the most polluted cities in the world. 

The concern for the natural environment was not limited to the early 2000s; it was already a topic of serious discussion in Nepal in the 1990s as well. In the case of Godavari Marbles, which was pronounced in 1995 and filed by Surya Prasad Sharma Dhungel, the apex court was of the view that human life is endangered in a polluted environment. The polluted environment leads to the deprivation of an individual’s life and physical well-being. The right to be free from such a polluted environment is a matter of individual rights and freedoms. In this respect, the protection of the environment is directly related to human life and physical integrity.  

Strict laws, poor execution

The Environment Protection Act, 2019 has been enacted by the government to implement Article 30 of the Constitution, which guarantees a breath of fresh air to every citizen. The Act aims to protect and improve the environment and to mitigate the pollution; to enforce the right to clean the environment; to grant compensation to victims of environmental pollution; and to implement EIA, Environmental Study and Environment Examination reports.  

The Act has set heavy fines for non-compliance of law and government policies. For instance, Section 35 of the Act envisages that there could be a fine of up to five million at the instance of non-compliance of EIA by a proponent. Defiance of Initial Environmental Examination could lead to fines of up to one million.

Socio-cultural legacy

Nepal is a pluralistic country where people belonging to every ethnicity and faith co-exist. Our cultural legacy shows that we have never been cruel toward the environment. In fact, environment protection is one of the cultural heritages of Nepal. 

Every religious and cultural practice we observe symbolizes environmental protection. See, the grand festival of Chhath. It’s the festival demanding cleanliness of waters. The devotees offer prayers to the Sun god by standing in the waters. 

On the first day of the month of Baisakh, people in Tarai-Madhesh celebrate Jur Shital, the festival which aims to protect the trees, waters and soil. The festival begins with elders sprinkling cool water on the head of their relatives and this practice is considered to be part of seeking blessings from the elders. The family members spread water on the plants and trees. In addition to this, there is a culture of playing the traditional game Kado-Mati (mud-soil) which is similar to mud bath. These cultural practices symbolize conservation of soil, trees, and water. 

Kautilya’s Arthashastra states that it is the Dharma of each individual in society to protect nature. The Yajna or sacrificial fire is apparently done to worship one or other deity and it ultimately purifies the air. The Samaveda highlights the importance of the Yajna as it helps in keeping away the mosquitoes and other insects. In Padma Purana and Karma Purana, it is mentioned that the trees, like Peepal, Bel, Neem, etc are the abode of the God and they are not to be cut. 

In Buddhism, the principle of Simplicity preaches for sustainability and the principle of Ahimsa (Non-violence) preaches for the love for flora and fauna. Our holy texts, laws and court judgments too show that the country has been serious towards environmentalism.

The way forward

Our concern for environmental protection should be a topic of daily discussions—not the persistence of pollution itself. Environmental pollution is a business of shame for ancient countries like Nepal, which have a rich socio-cultural and legal legacy of environmental stewardships. 

The more polluted our atmosphere becomes, the more our citizens are forced to spend on medicines and healthcare. Moreover, without addressing pollution, our development cannot be sustainable, nor can we effectively implement our green laws. Also, we would not be in a position to align with the global commitment to ‘Ending Plastic Pollution’, the theme of World Environment Day 2025. 

In fact, we should develop a conscious approach and strike a balance between environmental protection and development, held by the Supreme Court of Nepal in the landmark case of Advocate Narayan Prasad Devkota v Government of Nepal and Others (NKP 2066 BS, Decision Number 8521). The progress and pollution should not go together. There can be no end to progress in terms of industrialization, commercialization and globalization, and consequently, no escape from pollution. Still, we cannot turn a deaf ear to environmental protection measures. It is high time we implemented our green laws, embraced the wisdom of our cultural practices and revived our heritage of environmental protection.

Two dozen civil society organizations working on human rights, justice and accountability have said that due to the lack of proper consultations with civil society organizations, the transitional justice process in Nepal faces a serious legitimacy crisis.

A key example is the recent appointment of officials to the two transitional justice commissions, which has, in general, failed to establish credibility, they said in a joint statement.

It is our considered view that the manner in which the appointments have been made cannot advance this complex and sensitive process in a just and trustworthy manner, the statement says. 

“We also unequivocally assert that ignoring, dismissing or showing persistent intolerance toward longstanding legitimate concerns of victims and attempting to create and exploit divisions among them is yet another attempt to continue derailing the transitional justice process,” the statement reads. 

According to them, this process can only move forward if it earns the trust of the victims’ community. Otherwise, public confidence in the state will further erode, and debates around transitional justice will shift elsewhere—potentially toward alternative transitional justice models such as a Citizens’ Truth Commission or a hybrid mechanism.  

The sudden publication of a notice to collect complaints—without any regard for the sensitivity of victims of rape and sexual violence, their psychosocial condition, socioeconomic barriers, privacy and dignity—followed by the state’s failure to respond sensitively even after these serious concerns were raised by the victims and rights holders’ groups has raised concerns over credibility, the statement reads.

Disrespectful statements by Commission officials attacking the self-esteem and dignity of the victims and the absence of any attempt to restore meaningful consultation with victims, all the while strategically pushing for a mechanical approach—all send a clear message: that the commissions formed without credible appointments cannot earn legitimacy, nor can they be effective or meaningful. Instead, they will only be a repetition of past blunders and waste the country’s precious resources and time, the statement says

The organizations have urged the Government of Nepal to immediately take the necessary initiative to engage in dialogue, consultation and deliberation with the victims’ communities who have repeatedly expressed their disagreement with the way appointments were made, in order to identify an appropriate solution and restore the legitimacy of the transitional justice process.

They also urged the international community and the United Nations not to provide any financial or technical assistance, as in the past, to the government and/or the TJ commissions that have lost legitimacy until and unless the government reverts the process back to the right track from the very point where an environment of lack of trust and confidence with the victims arose, and as long as there is no guarantee of putting the victim communities, their self-esteem, participation, ownership and satisfaction at the heart of the process.