Sushil Bhatta, the former Chief Executive Officer (CEO) of Nepal’s Investment Board, was arrested on Saturday in Sanepa, Lalitpur, on charges of money laundering. Kathmandu Police Range Senior Superintendent of Police (SSP) Dilip Ghimire confirmed Bhatta’s arrest.
Police initiated the investigation into Bhatta after finding evidence of financial transactions with middleman Inam Sapkota and alleged involvement in efforts to secure the release of businessman Deepak Bhatta, who is currently in custody for major financial crimes. Previously, Bhatta had been arrested under the Nepal Rastra Bank Act, but the investigation has now shifted to focus on money laundering charges.
Investigation into financial dealings with Inam Sapkota
According to the police, Sushil Bhatta’s arrest followed revelations from middleman Inam Sapkota’s statement, phone contacts, and other activities indicating his involvement. Sapkota himself is under investigation for money laundering. Police sources confirmed that evidence of financial transactions between Inam Sapkota and Sushil Bhatta has been uncovered.
Sapkota is also implicated in alleged manipulations with former Chief Justice Cholendra Shumsher Rana. The Department of Money Laundering Investigation, an official body established by the Government of Nepal on July 15, 2011, to investigate illicit earnings and financial contributions to terrorist activities, launched an investigation into Sapkota after examining his mobile phone, which revealed details related to court manipulation, assurances of promotions and case settlements, contract dealings, and overseas asset management.
Alleged involvement in Deepak Bhatta’s release efforts
Businessman Deepak Bhatta, Sushil Bhatta’s brother, has been in custody since March 2026 on charges of involvement in major financial crimes. The government has been investigating recent attempts to secure Deepak Bhatta’s release, and Sushil Bhatta’s involvement emerged during this process.
Deepak Bhatta was arrested by the Central Investigation Bureau (CIB), a specialized investigation unit under Nepal Police, on April 2, 2026, on charges of money laundering. The Department of Money Laundering Investigation had previously written to the Department of Immigration to freeze Deepak Bhatta’s passport.
Legal implications of money laundering charges
Sushil Bhatta is currently under investigation for money laundering. Under the Anti-Money Laundering Act, 2064 (2007), a person convicted of money laundering can face a fine of up to five times the amount involved and imprisonment ranging from seven to twenty years, depending on the severity of the offense.
The Act also stipulates that those who attempt, aid, or abet the commission of the offense shall be subject to half the punishment prescribed for the principal offender. This indicates the seriousness of the potential penalties Bhatta could face.
Bhatta’s background and previous appointment
Sushil Bhatta was appointed as the CEO of the Investment Board for a four-year term on August 3, 2020. His tenure concluded on August 3, 2024, after which the position remained vacant.
Ongoing investigation and unanswered questions
Further evidence is being collected regarding the money laundering charges against Sushil Bhatta. Police are continuing their investigation to publicly disclose detailed information about the financial transactions between Inam Sapkota and Sushil Bhatta. The investigation also continues into who else may be involved in the alleged efforts to secure Deepak Bhatta’s release. The Department of Money Laundering Investigation will continue its probe into this case.
For earlier coverage, please see: Former Investment Board CEO Sushil Bhatta arrested under Nepal Rastra Bank Act.
