A Kathmandu District Court on Monday sentenced 16 individuals, including senior politicians and bureaucrats, for their roles in a fake Bhutanese refugee scam that defrauded hundreds of Nepali citizens of millions of dollars by promising resettlement in the United States.
Judge Tej Bahadur Khadka issued the verdict, marking a major development in a corruption case that has shaken Nepal’s political establishment. Among those convicted are former Deputy Prime Minister Top Bahadur Rayamajhi and former Home Secretary Tek Narayan Pandey. Seven defendants were acquitted, while cases against eight absconding suspects have been suspended pending arrest.
Sentences
The court imposed a maximum sentence of four years in prison and a fine of 40,000 Nepali rupees (about $264) on key figures identified as central to the scheme. Those include Rayamajhi, Pandey, and alleged intermediaries Keshav Prasad Dulal, Sanu Bhandari, Sagar Rai, Sandesh Sharma, Govinda Kumar Chaudhary and Ang Tawa Sherpa.
Former Home Minister Bal Krishna Khand and Bhutanese refugee leader Tek Nath Rijal were each sentenced to two years in prison and fined 20,000 rupees (about $132).
Indrajit Rai, a former security adviser at the Home Ministry, received a 75% reduction in his remaining sentence under provisions related to senior citizens. Having already served more than three years in pretrial detention, he will serve an additional reduced term and pay a 40,000-rupee (about $264) fine.
Other defendants, including Narendra KC, Shamsher Miya, Haribhakta Maharjan and Niranjan Kumar Kharel, were each sentenced to one year in prison and fined 10,000 rupees (about $66). Bechan Jha received a one-year sentence for attempted fraud. Time already served in custody will be deducted from all sentences.
Acquittals and absconding suspects
The court acquitted seven individuals, citing insufficient evidence. Those cleared include Sandeep Rayamajhi, Pratik Thapa, Ram Sharan KC, Tanka Kumar Gurung, Laxmi Maharjan, Keshav Tuladhar and Ashish Budhathoki.
Proceedings against eight absconding defendants have been put on hold and will resume upon their arrest or appearance in court.
Abuse of authority
The court found that senior officials abused their positions to facilitate the scheme. Investigators determined that Rayamajhi and Pandey played roles in manipulating a government task force report related to Bhutanese refugees.
Khand was found guilty of aiding the network and accepting illicit benefits while in office. He had previously been released on bail and may seek further legal remedies.
Authorities said the network collected between 1 million and 5 million rupees (roughly $6,600 to $33,000) per victim.
Background of the scam
The fraud is linked to the conclusion of a third-country resettlement program. Between 2007 and 2016, more than 113,000 Bhutanese refugees living in camps in eastern Nepal were resettled to Western countries, primarily the United States, under a UNHCR-supported initiative.
After the program ended, a limited number of refugees remained. In 2019, the Ministry of Home Affairs formed a task force, led by Bal Krishna Panthi, to identify remaining eligible individuals.
According to investigators, members of the criminal network manipulated elements of the task force process, inserting names of Nepali citizens who had paid large sums while excluding legitimate refugees. Victims were shown forged government documents and promised expedited resettlement.
The group allegedly operated through agents across Nepal, issuing fake refugee identification documents and staging fraudulent processing procedures to convince victims their relocation was imminent.
Investigation and exposure
The scheme operated for several years before unraveling in 2022, when victims, after failing to reach the United States, began demanding refunds. Many reported receiving checks that later bounced.
Complaints filed with police led to an investigation that gained momentum in March 2023 following the arrests of key suspects. Digital evidence, including mobile phone data, helped investigators link the scheme to high-level officials.
The case drew nationwide attention, fueled by sustained media reporting, and ultimately led to the court’s ruling.
Dipendra Dhungana
View More PostsDipendra Dhungana is a journalist based in Kathmandu with over a decade of experience in photojournalism. His work has been featured in numerous national and international outlets, showcasing the stories and resilience of the Nepali people. He is also a contributing journalist for NepYork.
