KATHMANDU, JULY 9

The Supreme Court has quashed the Special Court verdict that convicted former Director General of the Inland Revenue Department Chudamani Sharma and former members of the Tax Settlement commission Umesh Prasad Dhakal and Lumbadhwaj Mahat.

A division bench of Justice Saranga Subedi and Tek Prasad Dhungana quashed the conviction verdict and ordered the Special Court to retry the case filed against them, properly appreciating evidence. The Special Court had found these defendants guilty of corruption.

According to Deputy Registrar of Special Court Krishna Sharan Lamichhane, the Supreme Court order that was sent to the Special Court today, states that the Special Court should retry the case as the Special Court's June 20, 2023 verdict suffered from serious infirmities. The Supreme Court also ordered the Special Court to record the statement of experts in accordance with the provisions of Evidence Act, and allow a chance to the defendants to rebut the arguments of the experts and properly appreciate evidence regarding the allegations that fake VAT bills were produced to seek tax exemptions. The Supreme Court said that the defendants should released on general court date.

Lamichhane said that the Special Court had written to jails where the defendants were lodged telling them to release them from jail. The next court hearing from defendants has been scheduled for July 28.

In response to the corruption case, the Special Court, on June 20, 2023, had imposed a jail term of nine years and one month on former chair of Tax Settlement Commission Lumbadhwaj Mahat.

The Special Court sentenced Chudamani Sharma and Umesh Prasad Dhakal to nine years in jail.

The Special Court had also imposed a fine of Rs 4.10 billion on each of the three convicts.

The bench of Chairman of the Special Court Judge Shree Kanta Paudel, and judges Yamuna Bhattarai and Shaligram Koirala had found the three defendants guilty of corruption.

The CIAA had filed a corruption case in July 2017 accusing the trio of embezzling nearly Rs 11 billion when they were office bearers of the Tax Settlement Commission in 2015.

The anti-graft body has accused the three of making taxpayers submit less than the actual amount, causing loss to the government.