KATHMANDU, JULY 24
A case has been filed against eight individuals with the Kathmandu District Court in connection with an ongoing fraud investigation that originated in recommendations made by a high-level investigative commission in Bal Mandir.
Confirming the developments, CIB Spokesperson, Senior Superintendent of Police Anupam Shumsher Rana, told The Himalayan Times that formal legal proceedings have begun and the suspects have been placed in custody. "Cases against eight people were filed in Kathmandu District Court yesterday," he said, adding that three arrests had already taken place and remands had been extended. "We are handling the case."
When asked about the specifics of the case, the official explained that the police intervention was based on findings submitted by a specialised investigative body. "This is a matter of fraud," Rana stated. "This report came from a high-level investigative commission ... It is in the process of investigating that very report."
He added that the authorities are actively pursuing the case in accordance with their legal mandate. "And the fraud is within our jurisdiction, which is monitored by the police. The investigation and enquiries are proceeding accordingly," he noted.
The CIB had previously arrested three former office-bearers and officials of the Nepal Children's Organisation (Bal Mandir) for alleged involvement in the irregular withdrawal and embezzlement of organisational funds.
The arrests were carried out on July 8 in various locations throughout Kathmandu after police obtained prior authorisation from the Kathmandu District Court. The state-plaintiff action is based on joint findings detailed in a previous police investigation and the High-Level Inquiry Commission Report, 2020, which revealed systemic financial irregularities and fraud at Bal Mandir.
In 2020, the government established a five-member investigation commission, led by former high court chief judge Hari Babu Bhattarai, to investigate the activities of Bal Mandir and other children's homes.
The current government, led by Prime Minister Balendra (Balen) Shah, has put the report's findings into action.
The report exposed decades of systemic abuse, revealing that the charity sent 948 children abroad under international guardianship while only 72 had proper files and that the corresponding adoption fees had vanished from official bank accounts. The broader scandal concerns the exploitation of Bal Mandir's 61,000-square-metre Naxal estate.
Following their detention, the three suspects were brought before the Kathmandu District Court, where authorities successfully obtained an extension of their judicial remand to allow for further investigation into the case.
According to an official statement released by CIB Spokesperson and SSP Rana, the detained individuals include 54-year-old Asha Shrestha, a resident of Ward No 11, Kathmandu Metropolitan City, who previously served as the head of the Planning and Scholarship Branch at Bal Mandir's central office in Naxal.
Also arrested were 62-year-old Om Krishna Karmacharya, a permanent resident of Thasikhel, Ward No 5, Lalitpur Metropolitan City, currently residing in Ward No 21, Kathmandu, who served as the former chairman of the Lalitpur District Committee; and 51-year-old Rajendra Kumar Shrestha, a resident of Ward No 1, Gokarneshwor Municipality, Kathmandu, who previously held the post of secretary for the Kathmandu District Committee of Bal Mandir.
Likewise, cases have also been filed against absconding individuals - Yuree Kumari Rai, the then chairperson; Deepakdas Shrestha, the then treasurer; Prayagraj Shrestha, the then treasurer; Bhagwan Shakya, the then chairperson; and Ramkrishna Chitrakar, the then advisor.
Spokesperson Rana said, "These individuals are on the run, and the police are looking for them."
The CIB's investigation report found that then chairperson Rita Singh had consented to lease out 29 ropanis of Bal Mandir land in Naxal to Manoj Kumar Mishra without any public notice or competition and had taken Rs 7.5 million in cash. It has also been found that the accused had used the funds from the treasury, which should have been used for the welfare of children, for their own treatment, family bereavement expenses and personal vehicle purchases.
In the vehicle purchase scam, it was found that Rajendra Kumar purchased a vehicle in his name and paid the instalments of the vehicle from the fund of Bal Mandir, and the then chairperson Shakya personally used the vehicle.
Moreover, it has been found that Asha flouted the rules and continued to take a monthly amount in the name of 'transport allowance' from Bal Mandir even after being elected to the public office (ward member).