Nepal’s Department of Money Laundering Investigation (DMLI), the government body investigating money laundering, has identified contractor Nabin Raj Basnet, a fugitive in a 13-year-old red sandalwood smuggling case. The DMLI has now requested authorities to locate Basnet and produce him before the Kathmandu District Court.
Basnet, originally from Dolakha, was listed as a fugitive in a red sandalwood smuggling case dating back to April 22, 2013. His case had been kept pending by the Kathmandu District Court on June 22, 2025, due to his unknown whereabouts. However, during an ongoing money laundering investigation into Basnet, the DMLI established his address and identity details.
The DMLI informed the Division Forest Office (DFO), Kathmandu, a government office under the Bagmati Province government, Ministry of Forests and Environment, that documents from the Inland Revenue Office, Koteshwor, included records of Kalinchowk Mai Suppliers, operated by Basnet, and a copy of his citizenship certificate. Badri Kumar Karki is the current chief of the DFO, Kathmandu. The Office of the Government Attorney, Kathmandu, led by Chief Assistant Attorney Somakant Bhandari, has also been informed of the development.
Details of the 2013 Smuggling Case
The original red sandalwood smuggling incident occurred on March 31, 2013, when police received information about illegal timber being transported in a mini-truck. Police intercepted the vehicle, registered as Ba 1 Kha 5759, while it was travelling from Guheshwori towards Gothatar in Kathmandu. A search revealed nine pieces of red sandalwood concealed under sand in the truck’s rear section.
The driver, Bhim Bahadur Sunuwar of Kakurthakur, Sindhuli, and his assistant, Khem Bahadur Singh of Hariwan, Sarlahi, were arrested. During their interrogation by the Metropolitan Police Range, Hanumandhoka, they stated that Nabin Raj Basnet, identified as the owner of Kalinchowk Suppliers, had instructed them on March 29, 2013, to transport sand. They further claimed that Basnet travelled ahead on a motorcycle while they followed in the truck.
Investigators also found that Basnet had rented the truck from Ramesh Prajapati under a one-year agreement signed on November 9, 2012, at a monthly rent of Rs 25,000. Despite these findings, when the case was initially filed, only the driver and assistant were made defendants, with Basnet’s case kept pending due to his unknown address. A report alleges that investigators at the time did not conduct further inquiries into who owned Kalinchowk Suppliers.
A bench of then Kathmandu District Court judge Ramesh Raj Pokharel convicted Sunuwar and Singh, sentencing each to six months in prison and a fine of Rs 361,600.
Links to Pradeep Adhikari and Money Laundering Probe
Nabin Raj Basnet’s name has also emerged in connection with Pradeep Adhikari, the former Director General of the Civil Aviation Authority of Nepal (CAAN), the government body regulating civil aviation. Adhikari was arrested by the Commission for the Investigation of Abuse of Authority (CIAA), Nepal’s anti-graft body, on December 3, 2025, on corruption charges related to the construction of Pokhara International Airport. Prem Kumar Rai is the current Chief Commissioner of the CIAA.
The DMLI’s investigation into Basnet has revealed a significant amount of land registered in his name, as well as in the names of his family members and business partners, within the Kathmandu Valley. Basnet, who was once described as coming from a modest economic background, is now considered financially well-off. Companies linked to him and his family include:
- Sandarbhik Construction Service Pvt Ltd
- Nil David International Unisex Salon
- Kshamadevi Construction Solution Pvt Ltd
- Dreamtown Developers Pvt Ltd
- Kshamadevi Interior
- Kshamadevi International Pvt Ltd
Sources at the DMLI, currently led by Director General Nirmal Dhakal, stated that authorities are collecting documents related to Basnet’s assets from various government agencies for a detailed investigation into his wealth sources.
Current Status and What’s Next
While authorities are seeking Basnet’s appearance, he was reported to have left for Germany with his family on March 30, 2026. The DMLI has formally requested the DFO to locate him and produce him before the Kathmandu District Court, where Ashok Kumar Basnet serves as a judge.
Meanwhile, Pradeep Adhikari remains in Sundhara Prison as of August 4, 2026, despite a bail order. The CIAA filed a corruption case against Adhikari and six others on December 4, 2025, for alleged irregularities amounting to Rs 135.7 million in the construction of the Nalinchok Helipad in Bhaktapur. Additionally, Adhikari’s wife, Sufal KC, a Nepali Army technical lieutenant colonel, has been under CIAA investigation for suspected money laundering since July 22, 2026. Adhikari had previously served as the project chief for Pokhara International Airport from 2014 to 2017 and as CAAN’s Director General from January/February 2022. The Public Accounts Committee of Parliament had directed action against him on May 27, 2025, citing over Rs 10 billion in irregularities at the Pokhara airport project.
The exact current whereabouts of Nabin Raj Basnet and whether he has been apprehended remain unconfirmed. Information regarding the current position of former Kathmandu District Court judge Ramesh Raj Pokharel, and the post-sentence status of Bhim Kumar Sunuwar and Khem Bahadur Singh, is also not available.
