Dhruv Dev Tax Evasion Case: DRI Sues Dhruv Construction MD for Rs 1.21 Billion
12th May 2025, Kathmandu
The Department of Revenue Investigation (DRI) has filed a case against Dhruv Dev, the Managing Director of Dhruv Construction Pvt. Ltd., at the High Court, Patan. The department accuses him of tax evasion worth over Rs. 1.21 billion.
Dhruv Dev Tax Evasion Case
Allegations of Fraudulent Transactions
The investigation began after irregularities appeared in the company’s financial records. Dhruv Construction, based in Kathmandu Metropolitan City-31, New Baneshwor, operates in contract work, consultancy services, and the trading of construction materials.
According to DRI officials, the company issued fake invoices without delivering actual goods or services. These invoices helped avoid the correct calculation of VAT and income taxes. Furthermore, payments for purchases were not made through banks, violating financial transparency norms.
Gaps in Tax Reporting
The department found that the company did not file VAT and income tax returns on time. It also submitted false records regarding earnings and expenditures. Authorities say Dev failed to provide the source of funds used to purchase materials.
Moreover, the company failed to issue bills in a serial order. This created confusion and allowed manipulation of financial records. Investigators also discovered that Dev had not paid VAT and income taxes to the government.
Legal Action and Law Violation
The department concluded that Dev violated several clauses under the Revenue Leakage (Investigation and Control) Act, 2052 (1995). According to Section 3 of the Act, actions taken by the company were against the law. Section 4 confirmed the offenses.
The DRI stated that Dev owed Rs. 45.8 crore in VAT and Rs. 14.6 crore in income tax. This totals to more than Rs. 60 crore in evaded taxes. Adding penalties and fines, the total amount climbs to Rs. 1.21 billion.
The case demands not only recovery of the evaded amount but also imprisonment, as per Section 23 of the same Act.
Details from the Department
Krishna Kumari Shrestha, the DRI spokesperson and Deputy Director General, confirmed the filing of the case. She explained that the investigation team collected clear evidence of revenue leakage.
Shrestha stated, “We found that Dev repeatedly submitted false tax declarations. He created fictitious transactions and misused the billing system.”
The department has officially demanded full recovery of the evaded amount. It has also asked the court to impose a fine equivalent to the total tax evaded. Alongside that, the department is pursuing a jail sentence for Dev.
Timeline and Offense Details
The offenses span several fiscal periods. Each year, the company continued to avoid transparency. The misuse of VAT billing, manipulation of income figures, and lack of documentation all point to a systematic effort to evade taxes.
The DRI followed up with field visits, bank audits, and cross-verification of submitted documents. After months of investigation, the evidence supported the decision to take legal action.
Broader Implications
This case marks one of the largest individual tax evasion cases in recent years in Nepal. It highlights the growing concern around business compliance and transparency.
The department emphasized its commitment to holding tax evaders accountable. It is working closely with other government bodies to strengthen oversight of private contractors and consultancy firms.
Officials warn that similar investigations will follow if businesses do not comply with financial regulations.
Final Remarks
The case against Dhruv Dev sets a precedent. It reflects the government’s serious intent to combat revenue leakage and fraud. The next steps lie with the judiciary, which will determine appropriate penalties and possible imprisonment.
Meanwhile, the Department of Revenue Investigation continues its work to protect public revenue and maintain financial integrity in the country.
For more: Dhruv Dev Tax Evasion Case
