Deepak Bhatt Arrested: Multi-Billion Share Scam and Money Laundering Investigation Rocks Nepal

3rd April 2026, Kathmandu

In a major crackdown on financial crime, the Department of Money Laundering Investigation (DMLI), with the support of the Central Investigation Bureau (CIB), arrested prominent businessman Deepak Bhatt on Thursday.

Deepak Bhatt Arrested

The arrest follows a long-term investigation into alleged multi-billion rupee irregularities involving the misuse of public company funds for private share trading.

The Kathmandu District Court, under Judge Madhav Prasad Subedi, has authorized a 10-day remand to allow the DMLI to proceed with a detailed investigation into the source of funds and the nature of the transactions.

The Allegations: A Rs 3.81 Billion Financial Web

Deepak Bhatt, a major shareholder in Himalayan Reinsurance, faces grave charges related to the Insurance Act, 2079 (Section 140) and the Money Laundering Prevention Act, 2064.

According to DMLI sources, Bhatt is accused of misappropriating funds from various public companies and their subsidiaries to purchase shares of Nepal Reinsurance Company.

The investigation suggests that nearly Rs 3.81 billion was moved through Bhrikuti Stock Broking (Broker No. 55) to facilitate these illegal acquisitions.

Breakdown of Alleged Fund Misuse:

Inter-Agency Investigation and Travel Ban

The arrest was triggered by a recent report submitted by the Securities Board of Nepal (SEBON). The DMLI had previously requested both SEBON and the Nepal Insurance Authority to investigate whether economic misappropriation occurred during these high-value trades.

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Earlier this week, the Department of Immigration froze Bhatt’s passport to prevent him from leaving the country while the DMLI finalized its evidence. Sources indicate that Bhatt was taken into custody after arriving at the CIB office for questioning.

Bhatt’s Defense: “I am a Victim of Fraud”

Appearing before the district court, Deepak Bhatt maintained his innocence, claiming he was a victim rather than a perpetrator. He argued that:

Unauthorized TMS Use: Close associates allegedly misused his Trade Management System (TMS) account to conduct the trades without his direct knowledge.

Lack of Broker Connection: He claimed not to know the brokers involved in the transactions.

Selective Prosecution: Bhatt expressed frustration that those who “betrayed” him have not been arrested, while he is being singled out for investigation.

Implications for the Nepalese Financial Sector

This case marks one of the most significant money laundering investigations in recent Nepalese history. It raises critical questions about corporate governance within reinsurance firms and the oversight capabilities of market regulators.

As the 10-day remand begins, the financial community awaits further details on how such a massive volume of public funds could be diverted into the secondary market.

For more: Deepak Bhatt Arrested