KATHMANDU, Dec 18: A high-profile corruption case worth Rs 5.25 billion has been filed against three individuals including a former secretary of the Government of Nepal, over alleged irregularities in leasing prime Nepal Trust land on Durbar Marg. The case was registered at Kathmandu District Court on Wednesday following an investigation by the Central Investigation Bureau (CIB) of Nepal Police.
The chargesheet submitted through the Kathmandu District Government Attorney’s Office names former Secretary Arjun Bahadur Karki, Joint Secretary Lekh Bahadur Karki, Lhakpa Sonam Sherpa—the chairman of Thamserku Trekking—and Thamserku Trekking Pvt. Ltd. as defendants. The case also seeks a five-year prison sentence for the three government officials.
The allegations center on irregularities in leasing one ropani and 14 aana of land owned by Nepal Trust. Officials had recommended accepting a proposal of Rs 6.46 billion, yet Thamserku Trekking reportedly signed the agreement at only Rs 1.59 billion in collusion with Nepal Trust officials.
Case filed against former Secretary Karki and three others
In May 2017, the lease was finalized for Rs 1.40 billion as rent and Rs 192.65 million for construction costs. The 30-year lease included a three-year construction period, allowing Thamserku Developers Pvt. Ltd. to build a business complex and lease it out.
The CIB claims that the higher initial proposals were deliberately reduced to favor the company, highlighting intent to defraud. The Durbar Marg land has long been under scrutiny for such irregularities.
Although the Commission for the Investigation of Abuse of Authority (CIAA) initially planned to shelve the case, the CIB pressed ahead, filing charges of fraud and criminal breach of trust rather than simple corruption.
Thamserku Trekking is accused of profiting from the land by leasing it at a lower price and constructing extra floors. The lease stipulated a three-story building with a basement, but the company built a five-story complex, prompting legal action. The matter is still pending at the Patan High Court. The company currently pays Rs 45 million annually to Nepal Trust.
Investigators say the tender process was tailored to favor Thamserku. The notice was issued on June 28, 2016, under Prime Minister KP Sharma Oli, and approved during Pushpa Kamal Dahal’s tenure. The Prime Minister serves as the patron of Nepal Trust.
The land, formerly owned by late King Birendra Shah and his family, was transferred to the government after the republic’s establishment.
The controversy extends beyond Durbar Marg. Other Nepal Trust properties, many leased to companies linked to Yeti Holdings, have also raised questions. In 2076 BS, a 25-year lease extension for Gokarna Forest Resort—six years before the previous term ended—sparked public and parliamentary opposition, placing then-Prime Minister Oli at the center of the debate.
