KATHMANDU: The Special Court today granted bail to suspended Director General of Inland Revenue Department Chudamani Sharma in a corruption case filed against him by the Commission for the Investigation of Abuse of Authority.

Sharma submitted bank guarantee equivalent to the bail amount of Rs 10 million as sought by the Special Court, according to Spokesperson for the Special Court Nagendra Keshari Pokhrel.

A division bench of justices Dwarika Man Joshi, Ratna Bahadur Bagchand and Narayan Prasad Pokhrel released Sharma on bail. Sharma also attended the hearing at the Special Court today.

The CIAA had filed a case against Chairman of Tax Settlement Commission Lumba Dhwaj Mahat, member Umesh Prasad Dhakal and Sharma for allegedly embezzling revenue by exempting big business houses from taxes for mutual benefit.

The anti-graft body has accused the three individuals of embezzling over Rs 10.2 billion revenue   by exempting 45 businesses from taxes for mutual benefit when they were the office bearers of Tax Settlement Commission.

Spokesperson Pokhrel said, “Sharma was present at the court today. He submitted the bank guarantee as per the court order and was released,” said Pokhrel. He said the CIAA had demanded 10 year jail sentence, along with fine, for the accused in accordance with Prevention of Corruption Act 2002.

The government had formed TSC in 2015 to settle various pending tax disputes. The commission was dissolved after the commission submitted its report in December 2015.

Of the 1,726 complaints on pending tax disputes, TSC had settled only 1,069. Though the TSC had received complaints to settle pending taxes worth Rs 30.5 billion, the commission had recovered only taxes worth Rs 9.5 billion from businesses whose taxes had been pending since long. The Public Accounts Committee of the Legislature-Parliament had also questioned the TSC’s decision to give huge tax exemption to business houses.

(UPDATED)

Sharma released on bail of Rs 10 mln

KATHMANDU: Former Director General of Inland Revenue Department Chudamani Sharma was released on bail of Rs. 10 million from the Special Court on Tuesday.

A bench of justices Dwarikaman Joshi, Ratna Bahadur Bagchand and Narayan Prasad Pokharel issued an order to seek the amount equivalent to ten million rupees in bail and accordingly Sharma was released on bail, said information officer at the Court Bishnu Pandey.

Sharma reportedly submitted a bank guarantee worth the amount from Nepal Investment Bank.

Sharma is facing a case of corruption at the court, filed by the Commission for Investigation of Abuse of Authority on the charge of causing losses worth billions of rupees to the state in waiving taxes as then Chair of the Tax Clearance Commission.

He was arrested on June 2 earlier this year.