Nepal arrests former energy minister in money laundering probe

Detention of Deepak Khadka follows arrests of ex-premier and interior minister over deadly September protests that reshaped the country’s politics.

By
(FILE IMAGE) Nepal's former energy minister Deepak Khadka (back, 2L) during a signing ceremony in Kathmandu on October 3, 2024. / AFP

Nepal’s former energy minister Deepak Khadka was arrested on Sunday in a money laundering investigation, police said, as authorities expand a sweeping probe tied to last year’s deadly anti-corruption protests.

Khadka’s arrest comes just a day after former prime minister KP Sharma Oli and ex-home minister Ramesh Lekhak were detained over their alleged roles in a violent crackdown on demonstrators.

Police said Khadka is being investigated in connection with cash recovered from his residence during the September unrest, when protests spiralled into nationwide upheaval.

From protest to political upheaval

The youth-led demonstrations began over a brief social media ban but quickly grew into a broader movement against corruption and economic hardship.

At least 76 people were killed during a two-day crackdown in early September, according to an official inquiry, fueling public outrage.

Protesters torched government buildings, including parliament, and ransacked Khadka’s home, where videos showed crowds tossing bundles of cash into the air—images that became a symbol of alleged elite corruption.

The unrest ultimately led to the collapse of Oli’s government.

New government pushes accountability drive

Following elections this month, the reformist Rastriya Swatantra Party swept to power, bringing its leader Balendra Shah into office as prime minister.

The new administration has pledged sweeping reforms, unveiling a 100-point agenda that includes investigating the assets of politicians and senior officials.

The arrests of Khadka, Oli and Lekhak signal an accelerating push to hold former leaders accountable, even as those detained deny wrongdoing and reject allegations they ordered security forces to open fire on protesters.